This delightful wooden toy is called kakashiyajirobe in Japanese. kakashi is scarecrow and yajirobe is balance.
The scarecrow is wearing a blue paper happi coat and a straw hat. Balanced on his head is black crow. His eyes, eyebrows and mouth are painted with Japanese hiragana characters.
Spin the crow and the balance moves on the scarecrow's head making for a charming and fun toy.