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Inequalities and Unfair Income Distribution in Japan

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  • Sayaka Sakoda

    (Japan Society for the Promotion of Science, Kyoto University)

Abstract

There has been a debate about what measurement is most appropriate for measuring inequality because the classical index does not distinguish between what is fair and unfair distribution of income. In this empirical study, the "Responsibility-Sensitive Egalitarian Theory" is applied for the case of Japan. Our paper firstly tracks the historical evolution of inequalities and concludes that the Japanese accept pre-tax income inequality because they believe their socio-economic class is determined by luck. Secondly, illustrating the Unfairness Lorenz Curve by gender shows that females face more unfairness than males: the pre-tax income of middle-income males increases slightly compared to the fair-income group from 2010 to 2013. However,the opposite is true for females in the bottom and middle classes. Considering there already exists a gender wage gap in Japan, it is necessary to take action to reduce inequality.

Suggested Citation

  • Sayaka Sakoda, 2020. "Inequalities and Unfair Income Distribution in Japan," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(1), pages 91-98, June.
    • Handle: RePEc:ana:journl:v:6:y:2020:i:1:p:91-98
    DOI: 10.22440/wjae.6.1.6
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    References listed on IDEAS

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    More about this item

    Keywords

    Income inequality; Fairness; Responsibility-Sensitive Egalitarian Theory;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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