## Minimum Wage as a Wage Policy Tool in Japan

_IMF Working Papers, November 28, 2016_

## Source details

**Canonical URL:** [Minimum Wage as a Wage Policy Tool in Japan](https://www.imf.org/en/publications/wp/issues/2016/12/31/minimum-wage-as-a-wage-policy-tool-in-japan-44412)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/minimum-wage-as-a-wage-policy-tool-in-japan-44412/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/minimum-wage-as-a-wage-policy-tool-in-japan-44412/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/minimum-wage-as-a-wage-policy-tool-in-japan-44412/bundle-manifest.json)

## Bibliographic details
- Authors: Chie Aoyagi, Giovanni Ganelli, Nour Tawk
- Published: November 28, 2016
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475555349.001

---

### Summary and main finding
- Using prefectural data, the study assesses the potential impact on wage dynamics of the planned minimum wage increase policy in Japan.
- Main result: stepping up minimum wage growth from 2 to the planned 3 percent per year could raise wage growth by 0.5 percent annually.

### Policy implications and recommendations
- Given Japan’s need for income policies to generate vigorous wage-price dynanics, reflecting the 2 percent inflation target, the minimum wage plan should be accompanied by other income policies.
- Recommended complementary measures:
  - Adopt more “unorthodox” income policies alongside minimum wage increases.
  - Implement a “soft target” for private sector wage growth through a “comply -or-explain mechanism” for wage growth.
  - Increase public wages in line with the inflation target.

### Research context and scope
- Data and approach:
  - Analysis uses prefectural data to study wage dynamics under the planned minimum wage increase.
- Subjects covered:
  - Labor, Minimum wages, Real wages, Wage adjustments, Wages
- Keywords explicitly used in the study:
  - Abenomics, distribution studies, government, income policies, minimum wage, Minimum wages, percentile data, real wage, Real wages, wage, Wage adjustments, wage distribution, wage growth, wage-price dynamics, Wages, worker, WP

---

## Content in this bundle

- **Minimum Wage as a Wage Policy Tool in Japan**
  - [Minimum Wage as a Wage Policy Tool in Japan (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp16232.pdf.md){rel="alternate" type="text/markdown"}
  - [Minimum Wage as a Wage Policy Tool in Japan (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2016/_wp16232.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/minimum-wage-as-a-wage-policy-tool-in-japan-44412_