Why Wages Do Not Increase Despite the Labor Shortage
Why Wages Do Not Increase Despite the Labor Shortage
复制标题
劳动力短缺为何工资不涨
DOI:
10.1093/ssjj/jyy005
复制
发表时间:
2018
影响因子:
1.1
通讯作者:
Usui Emiko
中科院分区:
文献类型:
--
作者:
増田聡;稲葉雅子;Usui Emiko
On a competitive labor market, equilibrium is the point at which supply equals demand. Figure 1 illustrates the labor supply and demand curves on a competitive market, showing that, at equilibrium E* workers are employed and paid wage w*. However, on this market, when workers are paid wage wL, which is below the equilibrium wage of w*, the demand curve indicates firms demand ED workers, while the supply curve indicates that only ES workers are willing to supply their labor at this wage. That is, the quantity of labor demanded exceeds the quantity supplied. Therefore, a wage below equilibrium indicates a labor shortage. The competition among firms for the few available workers will thus put upward pressure on wages and move the wage up towards its equilibrium value, w*. The contribution of Professor Yuji Genda—a prominent labor economist in Japan—starts by presenting the puzzling phenomenon where labor shortage and stagnating wages have been occurring simultaneously in Japan since 2010. The question of why we do not observe an upward pressure on wages when there is a labor shortage is considered an important topic in Japan, although it has not been hitherto analyzed in-depth by researchers. Professor Genda’s goal is to identify the best explanation for this phenomenon by asking 21 notable researchers, including bureaucrats, to share their views with each other. The researchers who have agreed to participate are experts in the field and many of them have published in top academic journals. It is remarkable that Professor Genda managed to convene these outstanding economists to a round table to discuss their opinions. In this process, common, prevailing explanations on the subject matter are identified, but there were also wide-ranging and various views expressed.Let me summarize the common explanations. Professors Daiji Kawaguchi and Hiromi Hara focus on the increases in non-regular employment. Specifically, the share of part-time workers has increased from 27.7% in 2001 to 37.5% in 2015 in Japan. Furthermore, they argue that the labor supply of non-regular employees—mostly married women and the elderly—is perfectly elastic (ie, the labor supply curve in Figure 1 is flat). Therefore, although there is a shift in labor demand, the wage increase for this group of workers is limited. They also mention the possibility of a ‘Lewisian turning point’on the labor market for non-regular employees in Japan, where the labor supply curve of nonregular employees will eventually become inelastic (ie, the labor supply curve in Figure 1 becomes steeper) and, therefore, the labor market for non-regular employees will move from labor surplus to shortage. As a result, wages will eventually increase. Along this line, Professor Etsuro Shioji shows evidence of an influx of workers from the manufacturing sector into the healthcare service sector with no significant wage decrease. This means the