JJapan

Among OECD nations, Japan requires the fewest weekly hours at minimum wage to exit poverty, while the U.S. requires the most

  • February 26, 2025

Among OECD nations, Japan requires the fewest weekly hours at minimum wage to exit poverty, while the U.S. requires the most

by osakahitman

6 comments

  1. This graph is deceptive as it uses US federal minimum wage. Most states have a higher minimum wage than that (California 16.50, Arizona 14.70, New York 15.50, Illinois 15 all in USD) and most jobs actually pay more than minimum wage, even basic service jobs.

    Also a very small portion of the US workforce is paid minimum wage.

    Yes the US has a minimum wage that isn’t aligned with cost of living, but the framing of this is inaccurate.

  2. 14 hours a week at minimum wage will get you out of poverty in Japan huh? What is that, about 14,000/week = about 56,000 per month. I guess the “claiming guaranteed minimum benefit” is doing a lot of the heavy lifting here?

  3. Believe this is for people on government subsidized incomes.

    Either way Japan ranks very low on household disposable incomes, which is probably a more substantial metric for the country overall. It will probably only continue to slip in ranking as inflation takes its toll.

    From the OCED on Japanese disposable incomes
    >Key Findings
    While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, health care and housing.

    >Household net adjusted disposable income is the amount of money that a household earns each year after taxes and transfers. It represents the money available to a household for spending on goods or services. **In Japan, the average household net adjusted disposable income per capita is USD 28 872 a year, lower than the OECD average of USD 30 490.**

    >Household net wealth is the total value of a household’s financial and non-financial worth, such as money or shares held in bank accounts, the principal residence, other real estate properties, vehicles, valuables and other non-financial assets (e.g other consumer durables). In Japan, the average household net wealth is estimated at USD 294 735, lower than the OECD average of USD 323 960.

    https://www.oecdbetterlifeindex.org/topics/income/

    Edit – Highlighted section on disposable incomes for those having a hard time understanding.

  4. I’m unsure about the veracity of the data here,but anecdotally I feel like it’s definitely *easier* (less punishing basically) to be poor here than other OECD countries. Socially speaking, the different classes are more intermingled, visible.

    And no, I’m not downplaying the difficulties of poverty so much as saying there’s more accommodations and understanding of people in poorer financial situations.

  6. A third of young women living alone in Japan are below the poverty line, and its over 40% for single women over 65. This statistic about minimum wage is just one metric and the reality is not as rosy.

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