In June, Abe unveiled a package of structural reform measures – part of the so called third arrow of Abenomics – to boost the economy. The package included plans to cut the corporate tax rate and reduce labor-market rigidities by boosting the role for women and foreigners in the workforce, but markets were unenthusiastic.
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"I think people are skeptical from here on in what is Abe going to do with this power, what are his priorities, where is that third arrow?" Jeffery Kingston, professor at Temple University in Tokyo, told CNBC. "People are waiting to see what he's going to do."
Still, some analysts are optimistic that with a fresh mandate Abe will be able to follow through.
"Abe now has a lot of political capital," which should enable him to carry out structural reforms, Tomohiko Taniguchi, the prime minister's special advisor to the Cabinet and Professor at Keio University told CNBC.
Labor market reform
One of Abe's key campaign pledges was that wages would rise next April, at the beginning of the fiscal year.
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"Companies have been improving their profit margins by cutting costs, mostly pay, [thus] in relation to corporate profits, wages in Japan are low compared to other developed nations," Atsushi Nakajima, chairman of the Research Institute of Economy, Trade and Industry told CNBC.
"The economy is the priority," Tomohiko Taniguchi said. The Democratic Party of Japan's crushing defeat at the polls may pave the way for labor market reform, he said, noting he's confident wages will rise.