Masayuki Morikawa, 31 March 2018

The Japanese economy is suffering its worst labour shortage since 1992. This column explores the impact of this shortage, in light of the past five years’ economic expansion. The main effect has been a decline in the quality of goods and services, which translates into increases in true prices. Going forward businesses should start differentiating their goods and services to capture the growing diversity of consumers’ willingness-to-pay.

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