In order to achieve the Kishida administration's vision of a "virtuous circle of growth and distribution", current tax system incentives have been expanded to promote wage increases as part of the 2022 tax reform.
However, we believe that sustained wage increases will require not only a boost from the tax system, but also improvements in labour productivity and growth expectations.
Read the full report here:
pdf AMO Insight Digital Transformation a key factor in making wage increases sustainable
Written by Yuko Iizuka, Economist, Asset Management One Co., Ltd.
Jan 2022