Foreign workers in Japan face 28% wage gap: government paper

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1. Hi all! This is Emma Ockerman from Nikkei Asia’s audience engagement team. Here’s an excerpt of the above article:

   *Foreign nationals in Japan earn less than their Japanese counterparts even after controlling for such factors as education and experience, according to a recent government report covering an area at the center of intense policy debate.*

   *The Cabinet Office’s economic white paper for fiscal 2024 includes for the first time a section focusing specifically on Japan’s more than 2 million foreign workers, finding that they earn 28% less than Japanese nationals.*

   *This owes in large part to demographic differences, with many Japanese workers being in their 40s to 50s while their foreign counterparts skew younger, often in their 20s, and have less experience. But even after adjusting for age, education, and other characteristics of individual workers or workplaces, the paper still found a 7% gap that cannot otherwise be explained.*

   *Permanent residents and residents based on personal status, such as spouses of Japanese nationals, slightly outearned Japanese citizens. Skilled professionals from overseas fell slightly behind, with a 4% gap. Foreigners with “specified skilled worker” status earned 16% less, and technical intern trainees 26% less.*