Why Are Japanese Wages So Sluggish?

May 1, 2009

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Format: Chicago

Martin Sommer. Why Are Japanese Wages So Sluggish?, (USA: International Monetary Fund, 2009) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Over the past decade, productivity-adjusted wages have grown at a slower pace in Japan than in other rich countries. This paper suggests that Japan's dualities between regular and "nonregular" labor market contracts and the relatively inefficient services sector have exacerbated the negative impact of globalization and technical change on the labor income share felt in all advanced economies. Reforms aimed at increasing productivity in services and reducing gaps in employment protection and benefits between regular and nonregular workers could help put Japan's wages on an upward trajectory in the medium term.

Subject: Employment, Labor markets, Labor share, Productivity, Wages

Keywords: Firm, Income, Labor market, Wage, Wage growth, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/097
Stock No:

WPIEA2009097
ISBN:

9781451872446
ISSN:

1018-5941

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