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Stable Wage Distribution in Japan, 1982-2002: A Counter Example for SBTC?

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  • KAWAGUCHI Daiji
  • MORI Yuko

Abstract

Wage distribution has been nearly stable in Japan for the last two decades, contrary to findings in the US, Canada, and the UK. The change in wage distribution during this period was almost completely caused by a distributional change in worker attributes. This implies that skill prices were very stable between 1982 and 2002. Both demand and supply for skilled workers have increased because of skill-biased technological change (SBTC), a rise in the number of college-educated workers induced by educational policy changes, and the aging of the population. In the balance of shifts in demand and supply, the skill price has been stable. Industries that experienced rapid computerization also experienced workers' skill upgrading. We find evidence consistent with SBTC.

Suggested Citation

  • KAWAGUCHI Daiji & MORI Yuko, 2008. "Stable Wage Distribution in Japan, 1982-2002: A Counter Example for SBTC?," Discussion papers 08020, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:08020
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    References listed on IDEAS

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    2. Giammario Impullitti, 2016. "Global Innovation Races, Offshoring and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 171-202, February.
    3. Kensuke Miyazawa, 2017. "Measuring Human Capital in Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 13(3), pages 241-268, November.
    4. Nao Sudo & Michio Suzuki & Tomoaki Yamada, 2012. "Inequalities in Japanese Economy during the Lost Decades," CIRJE F-Series CIRJE-F-856, CIRJE, Faculty of Economics, University of Tokyo.

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