IS MINIMUM WAGE AN EFFECTIVE ANTI‐POVERTY POLICY IN JAPAN?

Daiji Kawaguchi and Yuko Mori

Pacific Economic Review, 2009, vol. 14, issue 4, 532-554

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.

Date: 2009
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https://doi.org/10.1111/j.1468-0106.2009.00467.x

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Working Paper: Is Minimum Wage an Effective Anti-Poverty Policy in Japan? (2009)
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