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Japan has paved the way for an increase to its minimum wage, the first major change in more than 40 years. The cabinet has approved an updated wage bill that is aimed at narrowing the gap between rich and poor in the world's second-largest economy. Unions have called for higher wages as Japan emerges from a decade of problems and corporate profits start to pick up. However, the bill needs Parliamentary approval, and some observers argue that it does not go far enough. "The government is effectively postponing the issue," said Takahide Kiuchi of Nomura Securities.