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Earnings, income, and wealth inequality in Japan: a long-term perspective, 1984–2019

Author

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  • Sagiri Kitao

    (National Graduate Institute for Policy Studies (GRIPS) and Research Institute of Economy, Trade and Industry (RIETI))

  • Tomoaki Yamada

    (Meiji University)

Abstract

This study examines trends in earnings, income and wealth inequality among households in Japan from 1984 to 2019. Our findings reveal that inequality in all three domains has increased over the last decades, but due to different underlying factors. The rise in earnings and income inequality is primarily driven by demographic aging, with an increasing proportion of elderly households who typically exhibit higher inequality levels. The growth in wealth inequality is evident not only in the overall population but is particularly pronounced among the young. This trend is largely attributed to a significant rise in the number of households that possess extremely low wealth. Key factors contributing to inequality trends in Japan include aging demographics, shifts in household structure, and major macroeconomic developments such as the financial bubble period and the prolonged economic slow-down that followed.

Suggested Citation

  • Sagiri Kitao & Tomoaki Yamada, 2025. "Earnings, income, and wealth inequality in Japan: a long-term perspective, 1984–2019," The Japanese Economic Review, Springer, vol. 76(2), pages 231-283, April.
    • Handle: RePEc:spr:jecrev:v:76:y:2025:i:2:d:10.1007_s42973-024-00187-0
    DOI: 10.1007/s42973-024-00187-0
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    1. Toshihiko Mukoyama & Makoto Nakajima & Tomoaki Yamada, 2025. "Preface to the JER special issue on “Heterogeneity and Macroeconomics”," The Japanese Economic Review, Springer, vol. 76(2), pages 227-229, April.

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    More about this item

    Keywords

    Income inequality; Earnings inequality; Distributions of wealth; Demographic aging; Japanese economy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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