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THE IMPACT OF THE MINIMUM WAGE ON FEMALE EMPLOYMENT IN JAPAN
Author(s) -
KAWAGUCHI DAIJI,
YAMADA KEN
Publication year - 2007
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2006.00026.x
Subject(s) - minimum wage , estimation , economics , wage , low wage , labour economics , panel data , hourly wage , efficiency wage , demographic economics , econometrics , management
This article examines the impact of the minimum wage on employment, focusing on women in their 20s and 30s, who are known to be typical low‐wage workers in Japan. The results, based on a panel estimation, suggest that the minimum wage has a measurable impact on employment; the workers whose current wage is below the revised minimum wage are about 20–30 percentage points less likely to be employed in the following year than comparable low‐wage workers who are not affected by the revision of the minimum wage. The estimation results are sensitive to the choice of the control group. ( JEL J23, J38, J88)