Wage Disparity in Japan: A Cross-Country Comparison(in Japanese)

Kiyoshi Ota

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: Is Japan equal society in income distribution? This article explores the features of wage disparity in Japan. Wage income is the main component of labor income, the largest part of total income of the people. Cross-country comparisons for 15 OECD countries are made for both annual wage disparity among domestic male workers and lifetime wage disparity roughly measured by wage disparity within each age group. OECD‘s earnings database is used for data. The followings are the main findings: 1.Japan is more equal than average of 15 countries in annual wage disparity among male workers. In lower classes of wage income the Japanese wage is slightly unequally distributed than average. 2.Japan is found to be one of the most equal countries in lifetime wage disparity. The gap in size between annual wage disparity and lifetime wage disparity is considered to be due to the large wage disparity between age groups in Japan arising from the Japanese age seniority wage system.

Pages: 18 pages
Date: 2006-12
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