The dynamics of poverty and the promotion of transition from non-regular to regular employment in Japan

Economic effects of minimum wage revision and job training support

Yoshio Higuchi

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Comparison between Japan and other advanced countries shows that the relative poverty rate is high in Japan, and that many of the poor households are those with a non-regular worker. As for mobility between income classes, the proportion of households remaining in the poor class for a long period of time in Japan is close to the average for EU countries. The panel estimation of its effect on wages shows that the raising of the minimum wage is statistically significantly associated with an increase in wages of non-regular workers, in particular, female, but does not seem to decrease employment. The result shows that for male non-regular workers, firm-provided training promotes their transition to regular employment, and that for female non-regular workers, occupational training promotes their transition to regular employment at different firms.

Original languageEnglish
Pages (from-to)147-200
Number of pages54
JournalJapanese Economic Review
Volume64
Issue number2
DOIs
Publication statusPublished - 2013 Jun

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Job training
Poverty
Workers
Economic effect
Minimum wage
Japan
Wages
Household
Long period
EU countries
Income mobility
Panel estimation
Proportion

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

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abstract = "Comparison between Japan and other advanced countries shows that the relative poverty rate is high in Japan, and that many of the poor households are those with a non-regular worker. As for mobility between income classes, the proportion of households remaining in the poor class for a long period of time in Japan is close to the average for EU countries. The panel estimation of its effect on wages shows that the raising of the minimum wage is statistically significantly associated with an increase in wages of non-regular workers, in particular, female, but does not seem to decrease employment. The result shows that for male non-regular workers, firm-provided training promotes their transition to regular employment, and that for female non-regular workers, occupational training promotes their transition to regular employment at different firms.",
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