Wage Distribution in Japan, 1989-2003

22 Pages Posted: 2 Oct 2008

See all articles by Ryo Kambayashi

Ryo Kambayashi

Hitotsubashi University

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics

Izumi Yokoyama

University of Michigan at Ann Arbor - Department of Economics

Abstract

This study examines the recent trend of the Japanese wage distribution based on a micro-level data set from the Basic Survey on Wage Structure (1989-2003). We perform several decomposition analyses of changes in the distribution of the hourly wage. We observe that lower returns to education and years of tenure contribute to a 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 confirms the basic findings with a parametric variance decomposition.

Suggested Citation

Kambayashi, Ryo and Kawaguchi, Daiji and Yokoyama, Izumi, Wage Distribution in Japan, 1989-2003. Canadian Journal of Economics/Revue canadienne d'économique, Vol. 41, Issue 4, pp. 1329-1350, November/novembre 2008, Available at SSRN: https://ssrn.com/abstract=1276692 or http://dx.doi.org/10.1111/j.1540-5982.2008.00506.x

Ryo Kambayashi (Contact Author)

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

HOME PAGE: http://www.ier.hit-u.ac.jp/English/faculty/kambayashi.html

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

Izumi Yokoyama

University of Michigan at Ann Arbor - Department of Economics

611 Tappan Street
Ann Arbor, MI 48109-1220
United States

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