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Economic Development, Income Inequality and Social Stability in Prewar Japan: A Prefecture-level Analysis

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  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)

Abstract

This paper addresses the relationship between economic development, income inequality and social stability, using the data of prewar Japan. We have made prefecture-level income inequality index, based on tax and wage statistics with respect to four data points, 1888, 1896, 1921 and 1935. Regression analyses of the prefecture-level panel data confirmed that there was an inverse-U shaped relationship between economic development and income inequality. At the same time thorough analyses of the data on thefts and suicides, we found that income inequality gave a negative impact on social stability.

Suggested Citation

  • Tetsuji Okazaki, 2007. "Economic Development, Income Inequality and Social Stability in Prewar Japan: A Prefecture-level Analysis," CIRJE F-Series CIRJE-F-500, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2007cf500
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2007/2007cf500.pdf
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    Cited by:

    1. Baoxi Li & De Xiao, 2021. "The Impact of Income Inequality on Subjective Environmental Pollution: Individual Evidence from China," IJERPH, MDPI, vol. 18(15), pages 1-26, July.
    2. Fernando Tohmé & M. Ángeles Caraballo & Carlos Dabús, 2022. "Instability, political regimes and economic growth. A theoretical framework," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 291-317, February.

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