In this paper, we investigate the effects of the minimum wage on the wages and the employment structure by industry, using the wage equation and probit model based on 「Economically Active Population Survey」 of 2009 and 2014.
To summarize the results, raising the minimum wage would increase the wages by industry, more so in service than in manufacturing. In addition, raising the minimum wage would aggravate the employment structure by reducing the probability of becoming regular workers, but this was not found statistically significant in the manufacturing sector. The reasons that the effect of minimum wage differs by industry are as follows. First, the service industry has more distributed workers who earn below minimum wage. Second, the average wage of the service industry is lower than that of the manufacturing industry.