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The Impact of Minimum Wage Increases on Automotive Production: A Comparative Analysis of the United States, Japan, and China

Yuhan Liu
Scientific Journal of Economics and Management Research, (2026), Vol.8, No.2, pp.98-110
Published: February 28, 2026
DOI: 10.54691/ywzms852
PDF: Download Full Text PDF
Abstract

This study explored the effect of minimum wage has on automotive vehicle production, with data analysis from the United States, Japan, and China. This study aims to offer a more comprehensive answer through case studies and data collection focused on the automotive sector in selected countries. To analyze the impact of minimum wage on production, we collected data on major strikes leading to minimum wage increases in the United States, Japan, and China. We then ran a linear regression model to uncover the correlation between minimum wage fluctuations and automotive production during each respective year. Our analysis revealed a negative correlation between automotive production and minimum wage in the United States, whereas Japan and China exhibited a positive correlation. The observed disparities may be attributed to the variations in minimum wage levels, the availability of skilled workers, and the real wealth of each country. Other factors, such as government policies, economic cycles, and shifts in demand, may also significantly influence the impact of minimum wage on production levels. Future research should consider longer timeframes, more specific regional and industry segment analyses, and multivariate regressions to account for external factors and strengthen the causal link between minimum wage increases and automotive production.

Keywords: Minimum Wage; Automotive Production; Comparative Analysis; Labor Policy.
APA Citation: Yuhan Liu (2026). The Impact of Minimum Wage Increases on Automotive Production: A Comparative Analysis of the United States, Japan, and China. Scientific Journal of Economics and Management Research, 8(2), 98-110. https://doi.org/10.54691/ywzms852

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