The Bank of Japan released a research paper examining what prevents productivity gains from translating into wages. The paper found that during Japan's deflationary period, wage-setting exhibited both upward and downward rigidity, with upward rigidity being more pronounced. These wage freezes, along with downward nominal wage rigidity, deflation, and an emphasis on job security, suppressed wage growth and widened the wage-productivity gap. Alleviating these factors could raise wages and aggregate productivity through labor reallocation.