Nipponica

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.