Is Minimum Wage an Effective Anti-Poverty Policy in Japan?

23 Pages Posted: 24 Nov 2009

See all articles by Daiji Kawaguchi

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics

Yuko Mori

affiliation not provided to SSRN

Abstract

This paper considers whether the minimum wage is a well-targeted antipoverty policy by examining the backgrounds of minimum-wage workers. Whether raising the minimum wage reduces employment for unskilled workers is also investigated. An examination of micro data from a large-scale government household survey, the Employment Structure Survey (Shugyo Kozo Kihon Chosa), reveals that approximately half of minimum-wage workers belong to households with annual incomes of more than 5 million yen as a non-head of household. A regression analysis indicates that an increase in the minimum wage moderately reduces the employment of male teenagers and middle-aged married women, while it encourages the employment of high-school age youth.

Suggested Citation

Kawaguchi, Daiji and Mori, Yuko, Is Minimum Wage an Effective Anti-Poverty Policy in Japan?. Pacific Economic Review, Vol. 14, Issue 4, pp. 532-554, October 2009, Available at SSRN: https://ssrn.com/abstract=1509756 or http://dx.doi.org/10.1111/j.1468-0106.2009.00467.x

Daiji Kawaguchi (Contact Author)

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

Yuko Mori

affiliation not provided to SSRN

No Address Available

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