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Income Inequality and Redistribution Policies in Japan During the 1980s and 1990s

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  • Takashi Oshio

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    (Kobe University)

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    Abstract

    We examine the long-term trend of income inequality and the effects of redistribution policies over the past two decades in Japan. The key findings are as follows. First, more than half of the widening inequality is attributable to population aging and declining household size. Notably, the increasing share of the elderly who reside apart from their children has raised income inequality in terms of pre-tax pre-transfer income. Second, the effects of redistribution policies were concentrated on reducing inequality among the elderly, but most of the inequality was caused by income transfers from the young, and withinage redistribution was generally limited. Third, the younger cohorts tend to face greater inequality of disposable income, suggesting that the redistribution policies have become less progressive on a lifetimeincome basis.

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    Bibliographic Info

    Article provided by Journal of Income Distribution in its journal Journal of Income Distribution.

    Volume (Year): 15 (2006)
    Issue (Month): I (December)
    Pages: 119-146

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    Handle: RePEc:jid:journl:y:2006:v:15:i:i:p:119-146

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    Cited by:
    1. Jeremy Lise & Nao Sudo & Michio Suzuki & Ken Yamada & Tomoaki Yamada, . "Wage, Income and Consumption Inequality in Japan, 1981-2008: from Boom to Lost Decades," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
    2. Miyazaki, Takeshi & Kitamura, Yukinobu, 2014. "Redistributive Effects of Income Tax Rates and Tax Base 1984-2009: Evidence from Japanese Tax Reforms," Discussion Paper Series 610, Institute of Economic Research, Hitotsubashi University.

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