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Wage Distribution in Japan: 1989-2003

Author

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  • Ryo Kambayashi
  • Daiji Kawaguchi
  • Izumi Yokoyama

Abstract

Diverging economic inequality has become a common focus of economic debate in developed countries. In particular, the recent experience of Japan has started attracting international attention. We take advantage of a rich micro-level data set from the Basic Survey on Wage Structure (1989-2003) to perform an in-depth analysis of the change in the inequality and distribution of the hourly wage. We observe that lower returns to education and years of tenure contribute to diminishing income disparity between groups for both sexes. A larger variance within a group contributes to the wage disparity for males, while an increased heterogeneity of workers' attributes contributes to the wage disparity for females. The Dinardo, Fortin, and Lemieux decomposition also confirms the basic findings from a parametric variance decomposition.

Suggested Citation

  • Ryo Kambayashi & Daiji Kawaguchi & Izumi Yokoyama, 2006. "Wage Distribution in Japan: 1989-2003," Hi-Stat Discussion Paper Series d06-183, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hst:hstdps:d06-183
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    References listed on IDEAS

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    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
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    5. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    6. Paprzycki,Ralph & Fukao,Kyoji, 2012. "Foreign Direct Investment in Japan," Cambridge Books, Cambridge University Press, number 9781107411289, March.
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    8. Daiji Kawaguchi & Ken Yamada, 2007. "The Impact Of The Minimum Wage On Female Employment In Japan," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 107-118, January.
    9. Fumio OHTAKE, 2008. "Inequality in Japan," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 87-109.
    10. Daiji Kawaguchi & Junko Miyazaki, 2005. "Working Mothers and Sons' Preferences Regarding Female Labor: Direct Evidence From Stated Preferences," Hi-Stat Discussion Paper Series d05-110, Institute of Economic Research, Hitotsubashi University.
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    Cited by:

    1. Ken Yamada & Daiji Kawaguchi, 2015. "The changing and unchanged nature of inequality and seniority in Japan," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 129-153, March.
    2. Fumio Ohtake & M. Kohara & N. Okuyama & K. Yamada, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Japan," GINI Country Reports japan, AIAS, Amsterdam Institute for Advanced Labour Studies.
    3. Guido Cozzi & Giammario Impullitti, 2016. "Globalization and Wage Polarization," The Review of Economics and Statistics, MIT Press, vol. 98(5), pages 984-1000, December.
    4. Giammario Impullitti, 2016. "Global Innovation Races, Offshoring and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 171-202, February.
    5. GENDA, Yuji & KURODA, Sachiko & OHTA, Souichi, 2011. "Does downsizing take a toll on retained staff? An analysis of increased working hours during recessions using Japanese micro data," ISS Discussion Paper Series (series F) f154, Institute of Social Science, The University of Tokyo.
    6. 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.
    7. repec:eee:jjieco:v:44:y:2017:i:c:p:1-12 is not listed on IDEAS
    8. Daiji Kawaguchi & Yuko Mori, 2014. "Winning the race against technology," Bank of Japan Working Paper Series 14-E-5, Bank of Japan.
    9. Ken Yamada & Daiji Kawaguchi, 2012. "Changing Unchanged Inequality: Higher Education, Youth Population, and the Japan's Seniority Wages," Global COE Hi-Stat Discussion Paper Series gd12-243, Institute of Economic Research, Hitotsubashi University.
    10. Arnaud Lefranc & Fumiaki Ojima & Takashi Yoshida, 2014. "Intergenerational earnings mobility in Japan among sons and daughters : levels and trends ," Post-Print hal-01648188, HAL.
    11. Arnaud Lefranc & Fumiaki Ojima & Takashi Yoshida, 2014. "Intergenerational earnings mobility in Japan among sons and daughters: levels and trends," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 91-134, January.
    12. Yannick Kalantzis & Ryo Kambayashi & Sébastien Lechevalier, 2012. "Wage and Productivity Differentials in Japan: The Role of Labor Market Mechanisms," LABOUR, CEIS, vol. 26(4), pages 514-541, December.
    13. ITO Yutaka & KAWATA Keisuke & YIN Ting, 2015. "Nonprofit/For-profit Facility and Difference of Wage Distribution: Evidence from the Japanese elderly care industry," Discussion papers 15073, Research Institute of Economy, Trade and Industry (RIETI).
    14. Kawaguchi, Daiji & Mori, Yuko, 2016. "Why has wage inequality evolved so differently between Japan and the US? The role of the supply of college-educated workers," Economics of Education Review, Elsevier, vol. 52(C), pages 29-50.
    15. KAWAGUCHI Daiji & MORI Yuko, 2008. "Stable Wage Distribution in Japan, 1982-2002: A Counter Example for SBTC?," Discussion papers 08020, Research Institute of Economy, Trade and Industry (RIETI).
    16. Bognanno, Michael & Kambayashi, Ryo, 2013. "Trends in worker displacement penalties in Japan: 1991–2005," Japan and the World Economy, Elsevier, vol. 27(C), pages 41-57.
    17. Genda, Yuji & Kuroda, Sachiko & Ohta, Souichi, 2015. "Does downsizing take a toll on retained staff? An analysis of increased working hours in the early 2000s in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 36(C), pages 1-24.
    18. Hamermesh, Daniel S. & Kawaguchi, Daiji & Lee, Jungmin, 2017. "Does labor legislation benefit workers? Well-being after an hours reduction," Journal of the Japanese and International Economies, Elsevier, vol. 44(C), pages 1-12.
    19. NAKAMURO Makiko & INUI Tomohiko, 2013. "The Returns to College Quality in Japan: Does Your College Choice Affect Your Earnings?," ESRI Discussion paper series 306, Economic and Social Research Institute (ESRI).
    20. SAITO Yukiko & KOUNO Toshiaki, 2012. "Rising Wage Inequality Within Firms: Evidence from Japanese health insurance society data," Discussion papers 12039, Research Institute of Economy, Trade and Industry (RIETI).
    21. Nao Sudo & Michio Suzuki & Tomoaki Yamada, 2012. "Inequalities in Japanese Economy during the Lost Decades," CIRJE F-Series CIRJE-F-856, CIRJE, Faculty of Economics, University of Tokyo.

    More about this item

    Keywords

    Wage Distribution; Wage Equation; Variance Decomposition;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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