TOKYO -- Hourly earnings are showing an unusual pattern in Japan as rises in the minimum wage have left more people working near the pay floor despite a shortage of labor. The finding points to the existence of a congested segment of inefficient companies capable of paying their workers only at the lowest level.
Modest wage rises are often thought to improve productivity by spurring employers to boost efficiency in order to stay competitive. This argument will face an important test in Japan as to whether or not it is workable in this country.
