{
  "title": "Structural Barriers to Wage Income Growth in Japan: Japan",
  "publication": "Selected Issues Papers, May 18, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515",
  "canonical": "https://www.imf.org/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515",
  "overlayPath": "/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/index.md",
  "summary": "Stagnant income growth has limited Japan’s growth potential and reflation efforts. This paper dissects the wage dynamics of different labor groups and identifies the structural barriers to income growth.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Stagnant income growth has limited Japan’s growth potential and reflation efforts.\n- The paper dissects wage dynamics across different labor groups and identifies structural barriers to income growth.\n- Although average income growth has been weak because of the rise of part-time workers and their declining hours, real wages per hour have risen across all labor groups, with the most gain seen among part-time and female workers.\n- Weak income growth is largely driven by structural factors, including disincentives for second earners in the social security system, pension policies, and the dual labor market structure.\n- Policies to address these structural barriers are key to boosting income growth in Japan."
    },
    {
      "heading": "Findings on wage dynamics",
      "content": "- Average income growth weak due to:\n  - rise of part-time workers\n  - declining hours for part-time workers\n- Real wages per hour:\n  - rose across all labor groups\n  - largest gains among part-time workers and female workers\n- Dual labor market structure contributes to persistent disparities in wage income growth."
    },
    {
      "heading": "Identified structural barriers",
      "content": "- Disincentives for second earners in the social security system.\n- Pension policies that affect work incentives and income trajectories.\n- The broader dual labor market structure that segments full-time and part-time employment and limits overall wage growth."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Reform social security provisions that create disincentives for second earners to increase labor supply and household income.\n- Adjust pension policies to reduce adverse incentives on labor participation and wage progression.\n- Address aspects of the dual labor market to narrow gaps between full-time and part-time employment and support more inclusive wage growth.\n- Implement policies aimed at sustaining recent gains in real wages per hour for part-time and female workers while facilitating overall income growth."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Authors: Rui Xu, Kaustubh Chahande\n- Date: May 18, 2023\n- Pages: 15\n- Volume: 2023\n- Issue: 031\n- Series: Selected Issues Paper No. 2023/031\n- DOI: https://doi.org/10.5089/9798400241734.018\n- Stock No: SIPEA2023031\n- ISBN: 9798400241734\n- ISSN: 2958-7875\n\nSource: Structural Barriers to Wage Income Growth in Japan: Japan, Rui Xu, and Kaustubh Chahande, May 18, 2023.\n\n---\n\n Content in this bundle\n\n- Structural Barriers to Wage Income Growth in Japan\n  - Structural Barriers to Wage Income Growth in Japan (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Structural Barriers to Wage Income Growth in Japan (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/index.md)",
    "[Structured JSON version](/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/index.json)",
    "[Bundle manifest](/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/bundle-manifest.json)",
    "Authors: Rui Xu, Kaustubh Chahande",
    "Published: May 18, 2023",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798400241734.018",
    "Stagnant income growth has limited Japan’s growth potential and reflation efforts.",
    "The paper dissects wage dynamics across different labor groups and identifies structural barriers to income growth.",
    "Although average income growth has been weak because of the rise of part-time workers and their declining hours, real wages per hour have risen across all labor groups, with the most gain seen among part-time and female workers.",
    "Weak income growth is largely driven by structural factors, including disincentives for second earners in the social security system, pension policies, and the dual labor market structure.",
    "Policies to address these structural barriers are key to boosting income growth in Japan.",
    "Average income growth weak due to:",
    "Real wages per hour:",
    "Dual labor market structure contributes to persistent disparities in wage income growth.",
    "Disincentives for second earners in the social security system.",
    "Pension policies that affect work incentives and income trajectories.",
    "The broader dual labor market structure that segments full-time and part-time employment and limits overall wage growth.",
    "Reform social security provisions that create disincentives for second earners to increase labor supply and household income.",
    "Adjust pension policies to reduce adverse incentives on labor participation and wage progression.",
    "Address aspects of the dual labor market to narrow gaps between full-time and part-time employment and support more inclusive wage growth.",
    "Implement policies aimed at sustaining recent gains in real wages per hour for part-time and female workers while facilitating overall income growth.",
    "Authors: Rui Xu, Kaustubh Chahande",
    "Date: May 18, 2023",
    "Pages: 15",
    "Volume: 2023",
    "Issue: 031",
    "Series: Selected Issues Paper No. 2023/031",
    "DOI: https://doi.org/10.5089/9798400241734.018",
    "Stock No: SIPEA2023031",
    "ISBN: 9798400241734",
    "ISSN: 2958-7875",
    "**Structural Barriers to Wage Income Growth in Japan**"
  ],
  "related": [
    {
      "title": "Structural Barriers to Wage Income Growth in Japan",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/selected-issues-papers/2023/english/sipea2023031.pdf",
      "summary": {
        "path": "/-/media/files/publications/selected-issues-papers/2023/english/sipea2023031.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/selected-issues-papers/2023/english/sipea2023031.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/index.md",
    "json": "/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/index.json",
    "bundleManifest": "/en/publications/selected-issues-papers/issues/2023/05/18/structural-barriers-to-wage-income-growth-in-japan-japan-533515/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-20T19:12:42.774Z"
}