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

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  • Takashi Oshio

    (Kobe University)

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.

Suggested Citation

  • Takashi Oshio, 2006. "Income Inequality and Redistribution Policies in Japan During the 1980s and 1990s," Journal of Income Distribution, Ad libros publications inc., vol. 15(I), pages 119-146, December.
    • Handle: RePEc:jid:journl:y:2006:v:15:i:i:p:119-146
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    Cited by:

    1. Takeshi Miyazaki & Yukinobu Kitamura & Taro Ohno, 2019. "Income Tax Reforms and Redistribution by Age Group: Evidence From Japan," The Japanese Economic Review, Japanese Economic Association, vol. 70(1), pages 105-122, March.
    2. Jeremy Lise & Nao Sudo & Michio Suzuki & Ken Yamada & Tomoaki Yamada, 2014. "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, vol. 17(4), pages 582-612, October.
    3. Ryo Kambayashi & Daiji Kawaguchi & Izumi Yokoyama, 2008. "Wage distribution in Japan, 1989-2003," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1329-1350, November.
    4. 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.
    5. KITAO Sagiri & YAMADA Tomoaki, 2019. "Dimensions of Inequality in Japan: Distributions of Earnings, Income and Wealth between 1984 and 2014," Discussion papers 19034, Research Institute of Economy, Trade and Industry (RIETI).
    6. Miyazaki, Takeshi & Kitamura, Yukinobu & 北村, 行伸 & Ohno, Taro, 2016. "Tax Reforms, Redistribution and Population Aging : Evidence from Japan," Discussion Paper Series 645, Institute of Economic Research, Hitotsubashi University.

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