Why Are Japanese Wages So Sluggish?

 
Author/Editor: Sommer, Martin
 
Publication Date: May 01, 2009
 
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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.
 
Series: Working Paper No. 09/97
Subject(s): Wages | Japan | Developed countries | Productivity | Labor markets | Employment | Aging | Labor market reforms | Economic models | Cross country analysis

Author's Keyword(s): Japan | wages | labor share | productivity | dualities
 
English
Publication Date: May 01, 2009
Format: Paper
Stock No: WPIEA2009097 Pages: 21
Price:
US$18.00 (Academic Rate:
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