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Sponsorship
Co-sponsored by the Davis Center; the Fairbank Center for Chinese Studies; the Program on U.S.-Japan Relations, Weatherhead Center for International Affairs; the Edwin O. Reischauer Institute of Japanese Studies; and the Harvard Asia Center.
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Feb 13, 2021
On Jan. 27, Hiroaki Nakanishi, chairman of the Japan Business Federation (Keidanren), held an online meeting with his counterpart, Rikio Kozu, of the Japanese Trade Union Confederation (Rengo) to talk about wages, and, at one point, Nakanishi said that “somehow” Japan’s ranking for average pay among the 37 developed countries of the Organization for Economic Co-operation and Development had dropped. On Jan. 30, Tokyo Shimbun summarized the media reaction to Nakanishi’s remark by saying that the business leader made it seem as if he thought Japan’s pay situation “was somebody else’s problem.” Japan’s lower OECD ranking it went from #12 in 1990 to #24 in 2019 is due to wage stagnation: While salaries in Japan have remained roughly the same over the past 30 years, pay in other countries has gone up substantially, including in South Korea, the only other Asian economy on the OECD list.