Analysis of the Determinants of Minimum Wages in Japan  

Oleh:

Tamada, Keiko

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Japan Labor Review vol. 8 no. 2 (2011), page 24-41.
Topik: Japan's Minimum Wage System; The Guideline Increases; Unionization Rate

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ134.7 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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This paper overviews Japan's minimum wage system and examines the determinants of "guideline increases (meyasu-gaku)," which are the increases in minimum wages recommended by the central council, and the actual minimum wage increases set by the regional councils. In Japan, minimum wages are deliberated upon mainly by advisory councils. The central council recommends the guideline increases and the regional councils set the actual increase. Our analysis found that the guideline increases are positively affected by the wage growth rates. Comments by public interest at meetings of the central council have suggested that their decisions on the guideline increases are influenced by the growth rate, and our estimation results also support the hypothesis that the guideline increases are positively affected by the wage growth rate. Because the council comprises workers represented by union officials, we examined the possible impact of the unionization rate on the guideline increases. We found that the guideline increases is not affected by the unionization rate. Our analysis indicated that the actual minimum wage increases are set close to the guideline increases. We also found that the actual increase is positively affected by the active job openings-to-applicants ratio. As with the guidelines increases, however, our analysis showed that the actual increase is not affected by the unionization rate. In addition, we found that in 2007 and 2008, when the guideline increases were determined in light of the debates conducted by the Roundtable to Promotie Strategy to Enhance Growth Potential (seicho-ryoku sokoage senryaku suisin entaku kaigi) which set a policy direction toward minimum wage increases were larger than those in other years.

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