Impact of Change in Minimum Wage on Employment and Poverty in Japan

Mika Akesaka, Yukiko Ito and Fumio Ohtake

ISER Discussion Paper from Institute of Social and Economic Research, The University of Osaka

Abstract: This paper analyzes the impact of change in minimum wage on employment and poverty in Japan using micro data from the Employment Status Survey (Shugyo Kozo Kihon Chosa), which is a large-scale government household survey. Using regression analysis, we find that an increase in minimum wage decreases the employment rate of males aged 15–19 years, decreases the percentage of employees, increases the percentage of self-employed and homeworkers in the case of those aged 50 years and above, decreases working hours of most employees. In addition, approximately 15% of the employees working at the minimum wage level belong to households with incomes below the poverty line, and an increase in the minimum wage increases the poverty rate.

Date: 2017-04
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Persistent link: https://EconPapers.repec.org/RePEc:dpr:wpaper:0999

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