1993 Fiscal Year Final Research Report Summary
A Theoretical and Empirical Inquiry into the Distribution of Income and Wealth in Japan
| Project/Area Number |
03301080
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| Research Category |
Grant-in-Aid for Co-operative Research (A)
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| Allocation Type | Single-year Grants |
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| Research Field |
経済事情及び政策学
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| Research Institution | The University of Tokyo |
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Principal Investigator |
ISHIKAWA Tsuneo University of Tokyo, Professor, 経済学部, 教授 (90107483)
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| Co-Investigator(Kenkyū-buntansha) |
TACHIBANAKI Toshiaki Kyoto University, Institute of Economic Research, Professor, 経済研究所, 教授 (70112000)
TAKAYAMA Noriyuki Hitotsubashi University, Insutitute for Economic Research, Professor, 経済研究所, 教授 (30102940)
HATTA Tatsuo Osaka University, Institute of Social and Economic Research, Professor, 社会経済研究所, 教授 (70008647)
NISHIMURA Kiyohiko University of Tokyo, Associate Professor, 経済学部, 助教授 (70164580)
YOSHIKAWA Hiroshi University of Tokyo, Professor, 経済学部, 教授 (30158414)
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| Project Period (FY) |
1991 – 1993
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| Keywords | Income Ditribution / Wealth Ditribution / Labor Share / Savings / Inequality / Deal Atracture / College Education / 大学教育 |
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| Research Abstract |
Through careul examination of a wide varicly of statistical sources we tried to illuminate the current circumstances of income and wealth inequality in Japan and the recent changes thereof. The major findings are as follows.
(1)As regards wage income, there is a mild tendency of widening inequality. Hoewver, the changes in the composition of age andd education appear to offset the effects of changes in the rate of return to job tenure, thus maintaining the degree of wage dispersion extremely stable as compared with recent wxoeriences in the U.S.and U.K.The distribution of wage income appears to be more equal as compared with the countries referred to above, yet there exists a clear dual structure composed of a primary sector with high and incremental wages and a secondary seetor with low and flat wages.Moreover, the latter scctor scems to be wxpanding over the last decade. As regards the overall wage share of the economy, the important factors governing its movement appear to be the mov
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ement of aggregate demand, on the one hand, and the institutional sctups of wage changes as well as the degree of imperfect competition in the products market, on the other
(2)When capital income such as interest and dividends, and in particular, the capital gains income on equitiees and land aer considered, the distributio of income including these categories apper to be expanding somewhat in large scale. Also the impact of capital gains on land and equity assets in the latter 1980's was very large in expanding wealth inequality among households.
(3)The rise in the relative price of college education is causing a standstill in the college enrollment among the young. There appears to be a clear tendency for sons and daughters of high income households to concentrate in colleges that require high scores in entrance examination test scores and that are associated with with good remunerations. In thus sense, the equality of opportunity among individuals seems to be at peril.
(4)As regards the household saving behavior, accumulation of both life-cycle savings assets and inheritance assets appears to be important. The accumulation of inheritance assets is nnot soley motivated by parental altruism, but also, and perhaps more importantly, by intra-family insurance. Although the existence of inheritance per se does not lead to increased wealth inequality, there is a possibility that the distortion of distribution via unexpeeted rise in asset priccs may be oassed on over several generations.
(5)Despite the recent shape-up of the Japanese public pension system, there still remains unreasonable redistribution of income through the oension system both intra-and inter-generationally.
(6)In view of an overview of Japan's current state of income transfer to the developing nations, there is a need to fundamentally reconsider the manner in which more desirable contribution can be made. Less
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