Some statistics show that the share of large firms’ personnel expenses to total personnel expenses accounted for only about 25 percent in Japan as of fiscal 2012 (Chart 12). It is also worth mentioning the image of the labor market if wages were to increase considerably in Japan, even if such increases are made mostly by large firms.
The wage Phillips curves for Japan and the United States – with the unemployment rate on the x-axis and the wage inflation rate on the y-axis – imply the possible changes that could occur in the labor market when wages increase considerably in Japan (Chart 13).