Host: The Japan Society for Management Information
Name : Annual Conference of Japan Society for Management Information 2019 Autumn
Location : [in Japanese]
Date : October 19, 2019 - October 20, 2019
Japan's GDP is currently the third in the world. Meanwhile, GDP per capita is low compared to the other developed countries. There is a concern that Japan's economic strength is lessened due to a declining birthrate and a growing proportion of elderly people. Improving productivity is essential for sustainable development in Japan, and there is a discussion that an increase in minimum wage may contribute to productivity improvement of firms and industries. This is because higher minimum wage increases labor costs of firms, which provides corporate managers incentives for cost reduction. However, there is no clear conclusions from previous studies on this issue. This study applies stochastic frontier analysis to prefecture-level data and examines influence of minimum wage on productivity.
