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Changing Unchanged Inequality: Higher Education, Youth Population, and the Japan's Seniority Wages

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  • Ken Yamada
  • Daiji Kawaguchi

Abstract

Wage inequality declined in the 1990s for full-time male workers in Japan, while it in- creased in the 2000s. We find that a decreased return to firm-specific human capital, which has been neglected in previous empirical analyses of inequality, is a key factor preventing a rise in wage inequality during the prolonged period of economic stagnation, known as Japan’s lost decades. A significant fraction of the increase in wage inequality in the 2000s is a mechanical change arising from an increased share of educated and experienced workers.

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File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd12-243.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd12-243.

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Date of creation: Sep 2012
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Handle: RePEc:hst:ghsdps:gd12-243

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Related research

Keywords: wage inequality; firm-specific human capital; heterogeneous returns; seniority wages; composition effects;

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References

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  5. Fumio Hayashi & Edward C. Prescott, 2000. "The 1990s in Japan: a lost decade," Working Papers 607, Federal Reserve Bank of Minneapolis.
  6. repec:siu:wpaper:35-2012 is not listed on IDEAS
  7. Hashimoto, Masanori & Raisian, John, 1992. "Employment Tenure and Earnings Profiles in Japan and the United States: Reply," American Economic Review, American Economic Association, vol. 82(1), pages 346-54, March.
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Citations

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Cited by:
  1. Jeremy Lise & Nao Sudo & Michio Suzuki & Ken Yamada & Tomoaki Yamada, 2013. "Wage, Income and Consumption Inequality in Japan, 1981-2008: from Boom to Lost Decades," Working Papers 2013-011, Human Capital and Economic Opportunity Working Group.
  2. KAWAGUCHI Daiji & MORI Yuko, 2014. "Winning the Race against Technology," Discussion papers 14017, Research Institute of Economy, Trade and Industry (RIETI).

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