Japan's wage paradox: higher pay chases staff away

Employers stung by housewives opting to stay below tax ceilings

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Many part-time employees in Japan's retail sector deliberately keep their income below certain tax thresholds. (Photo by Takaki Kashiwabara)

MASAYUKI NAKAGAWA, Nikkei staff writer

TOKYO -- Many of Japan's retailers and restaurateurs are finding themselves caught between a rock and a hard place after raising wages, somewhat paradoxically, caused a shortage of part-time employees.

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