Top Wage Incomes in Japan, 1951-2005
Using wage income tax statistics, we construct continuous series of upper wage income shares in Japan from 1951 to 2005 to document the evolution of top wage incomes and investigate their long-run determinants. We find that, while the middle wage income class gained enormously both in absolute and relative terms during the period of high economic growth, the upper wage income class faired comparatively better after 1975. In particular, the share of total wage accruing to the top 1% wage earners has risen steadily in the last ten years. Using a simple time-series regression analysis, we find that marginal income tax rates, corporate performance, female labor participation, and labor disputes are important determinants of top wage income shares in post-WWII Japan. Although not conclusive, our results suggest that much of the recent gains in wage income shares at the top can be explained by the changes in these four factors, placing a less emphasis on a story of structural change.
|Date of creation:||Dec 2008|
|Date of revision:|
|Publication status:||published as Moriguchi, Chiaki, 2010. "Top wage incomes in Japan, 1951-2005," Journal of the Japanese and International Economies, Elsevier, vol. 24(3), pages 301-333, September.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Xu, Peng, 1997. "Executive Salaries as Tournament Prizes and Executive Bonuses as Managerial Incentives in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 11(3), pages 319-346, September.
- Ishi, Hiromitsu, 2001. "The Japanese Tax System," OUP Catalogue, Oxford University Press, edition 3, number 9780199242566.
- Feldstein, Martin, 1995.
"The Effect of Marginal Tax Rates on Taxable Income: A Panel Study of the 1986 Tax Reform Act,"
Journal of Political Economy,
University of Chicago Press, vol. 103(3), pages 551-72, June.
- Martin Feldstein, 1993. "The Effect of Marginal Tax Rates on Taxable Income: A Panel Study of the1986 Tax Reform Act," NBER Working Papers 4496, National Bureau of Economic Research, Inc.
- Takao Kato, 1999.
"Chief Executive Compensation and Corporate Groups in Japan: New Evidence From Micro Data,"
- Kato, Takao, 1997. "Chief executive compensation and corporate groups in Japan: New evidence from micro data," International Journal of Industrial Organization, Elsevier, vol. 15(4), pages 455-467, July.
- Takao Kato, 1994. "Chief Executive Compensation and Corporate Groups in Japan: New Evidence from Micro Data," Economics Working Paper Archive wp_117, Levy Economics Institute.
- Takao Kato, 1999. "Chief Executive Compensation and Corporate Groups in Japan: New Evidence From Micro Data," Macroeconomics 9904010, EconWPA.
- Joel Slemrod, 1996.
"High-Income Families and the Tax Changes of the 1980s: The Anatomy of Behavioral Response,"
in: Empirical Foundations of Household Taxation, pages 169-192
National Bureau of Economic Research, Inc.
- Joel Slemrod, 1995. "High-Income Families and the Tax Changes of the 1980s: The Anatomy of Behavioral Response," NBER Working Papers 5218, National Bureau of Economic Research, Inc.
- Kato, Hideaki Kiyoshi & Lemmon, Michael & Luo, Mi & Schallheim, James, 2005. "An empirical examination of the costs and benefits of executive stock options: Evidence from Japan," Journal of Financial Economics, Elsevier, vol. 78(2), pages 435-461, November.
- Abe, Naohito & Gaston, Noel & Kubo, Katsuyuki, 2001.
"Executive Pay in Japan: The Role of Bank-Appointed Monitors and the Main Bank Relationship,"
CEI Working Paper Series
2001-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- Abe, Naohito & Gaston, Noel & Kubo, Katsuyuki, 2005. "Executive pay in Japan: the role of bank-appointed monitors and the Main Bank relationship," Japan and the World Economy, Elsevier, vol. 17(3), pages 371-394, August.
- Feldstein, Martin, 1995. "Effect of Marginal Tax Rates on Taxable Income: A Panel Study of the 1986 Tax Reform Act," Scholarly Articles 2766676, Harvard University Department of Economics.
- Kato, Takao, 2001. "The End of Lifetime Employment in Japan?: Evidence from National Surveys and Field Research," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 489-514, December.
- Ono, Hiroshi, 2010.
"Lifetime employment in Japan: Concepts and measurements,"
Journal of the Japanese and International Economies,
Elsevier, vol. 24(1), pages 1-27, March.
- Ono, Hiroshi, 2006. "Lifetime Employment in Japan: Concepts and Measurements," SSE/EFI Working Paper Series in Economics and Finance 624, Stockholm School of Economics, revised 06 Apr 2007.
- Morris M. Kleiner & Marvin L. Bouillon, 1988. "Providing business information to production workers: Correlates of compensation and profitability," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(4), pages 605-617, July.
- Steven N. Kaplan, 1992. "Top Executive Rewards and Firm Performance: A Comparison of Japan and the U.S," NBER Working Papers 4065, National Bureau of Economic Research, Inc.
- Kato, Takao & Rockel, Mark, 1992. "Experiences, credentials, and compensation in the Japanese and U.S. managerial labor markets: Evidence from new micro data," Journal of the Japanese and International Economies, Elsevier, vol. 6(1), pages 30-51, March.
- Chiaki Moriguchi & Emmanuel Saez, 2008. "The Evolution of Income Concentration in Japan, 1886-2005: Evidence from Income Tax Statistics," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 713-734, November.
- Katsuyuki Kubo, 2005. "Executive Compensation Policy and Company Performance in Japan," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(3), pages 429-436, 05.
- Motohiro Morishima, 1991. "Information sharing and collective bargaining in Japan: Effects on wage negotiation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(3), pages 469-485, April.
- Lindsey, Lawrence B., 1987. "Individual taxpayer response to tax cuts: 1982-1984 : With implications for the revenue maximizing tax rate," Journal of Public Economics, Elsevier, vol. 33(2), pages 173-206, July.
- Ashenfelter, Orley & Johnson, George E, 1969. "Bargaining Theory, Trade Unions, and Industrial Strike Activity," American Economic Review, American Economic Association, vol. 59(1), pages 35-49, March.
- Toshiaki Tachibanaki, 2005. "Confronting Income Inequality in Japan: A Comparative Analysis of Causes, Consequences, and Reform," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201585, June.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14537. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.