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The Impact Of The Minimum Wage On Female Employment In Japan

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  • DAIJI KAWAGUCHI
  • KEN YAMADA
Abstract
This article examines the impact of the minimum wage on employment, focusing on women in their 20s and 30s, who are known to be typical low‐wage workers in Japan. The results, based on a panel estimation, suggest that the minimum wage has a measurable impact on employment; the workers whose current wage is below the revised minimum wage are about 20–30 percentage points less likely to be employed in the following year than comparable low‐wage workers who are not affected by the revision of the minimum wage. The estimation results are sensitive to the choice of the control group. (JEL J23, J38, J88)

Suggested Citation

  • Daiji Kawaguchi & Ken Yamada, 2007. "The Impact Of The Minimum Wage On Female Employment In Japan," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 107-118, January.
    • Handle: RePEc:bla:coecpo:v:25:y:2007:i:1:p:107-118
    DOI: 10.1111/j.1465-7287.2006.00026.x
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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
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    4. Terence Yuen, 2003. "The Effect of Minimum Wages on Youth Employment in Canada: A Panel Study," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
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    7. Alan B. Krueger & David Card, 2000. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply," American Economic Review, American Economic Association, vol. 90(5), pages 1397-1420, December.
    8. Janet Currie & Bruce C. Fallick, 1996. "The Minimum Wage and the Employment of Youth Evidence from the NLSY," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 404-428.
    9. David Neumark & William Wascher, 2004. "Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis," ILR Review, Cornell University, ILR School, vol. 57(2), pages 223-248, January.
    10. William Wascher & David Neumark, 2000. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment," American Economic Review, American Economic Association, vol. 90(5), pages 1362-1396, December.
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    Citations

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    Cited by:

    1. Daiji Kawaguchi & Yuko Mori, 2009. "Is Minimum Wage An Effective Anti‐Poverty Policy In Japan?," Pacific Economic Review, Wiley Blackwell, vol. 14(4), pages 532-554, October.
    2. Yoshio Higuchi, 2013. "The Dynamics of Poverty and the Promotion of Transition from Non-Regular to Regular Employment in Japan: Economic Effects of Minimum Wage Revision and Job Training Support," The Japanese Economic Review, Japanese Economic Association, vol. 64(2), pages 147-200, June.
    3. Hara, Hiromi, 2017. "Minimum wage effects on firm-provided and worker-initiated training," Labour Economics, Elsevier, vol. 47(C), pages 149-162.
    4. HARA Hiromi, 2015. "The Effects of Minimum Wages on Training," Discussion papers 15075, Research Institute of Economy, Trade and Industry (RIETI).
    5. Kambayashi, Ryo & Kawaguchi, Daiji & Yamada, Ken, 2013. "Minimum wage in a deflationary economy: The Japanese experience, 1994–2003," Labour Economics, Elsevier, vol. 24(C), pages 264-276.
    6. Ryo Kambayashi & Daiji Kawaguchi & Izumi Yokoyama, 2008. "Wage distribution in Japan, 1989–2003," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1329-1350, November.
    7. Kato, Takao & Kodama, Naomi, 2014. "Labor Market Deregulation and Female Employment: Evidence from a Natural Experiment in Japan," IZA Discussion Papers 8189, Institute of Labor Economics (IZA).
    8. Mr. Chad Steinberg & Mr. Masato Nakane, 2012. "Can Women Save Japan?," IMF Working Papers 2012/248, International Monetary Fund.
    9. Abe, Yukiko & Tamada, Keiko, 2010. "Regional patterns of employment changes of less-educated men in Japan: 1990-2007," Japan and the World Economy, Elsevier, vol. 22(2), pages 69-79, March.
    10. Kawaguchi, Daiji & Mori, Yuko, 2021. "Estimating the effects of the minimum wage using the introduction of indexation," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 388-408.
    11. Pu‐yan Nie & Yong‐cong Yang, 2023. "Innovation and competition with human capital input," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1779-1785, April.
    12. SATO Kazuma, 2021. "The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan," Discussion papers 21075, Research Institute of Economy, Trade and Industry (RIETI).
    13. Ryo Kambayashi & Daiji Kawaguchi & Ken Yamada, 2012. "Minimum Wage in a Deflationary Economy: The Japanese Experience, 1994–2003," Working Papers 35-2012, Singapore Management University, School of Economics.

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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