The main objectives of a minimum wage are to reduce economic inequality and ensure that low-wage workers have appropriate earnings. However, there is ongoing debate on whether minimum wages improve productivity. This study surveys the literature related to the impact of minimum wages on productivity and presents evidence on the relationship between minimum wages and productivity using panel data of Japanese firms for the years 2001－2018. Fixed-effects and instrumental variable estimations are used. The estimation results do not indicate that an increase in minimum wages improves productivity in Japan.
