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

  • Ken Yamada
  • Daiji Kawaguchi

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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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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