Changing Unchanged Inequality: Higher Education, Youth Population, and the Japanese Seniority Wage System

Ken YAMADA, Singapore Management University
Daiji KAWAGUCHI, Hitotsubashi University

Abstract

See record with full text at https://ink.library.smu.edu.sg/soe_research/1414/. Wage inequality declined in the 1990s and rose after 2000 among full-time male workers in Japan. Narrowing wage inequality in the 1990s can be accounted for by a decline in between group inequality resulting from a stable return to education and decreased returns to experience and tenure. Widening wage inequality after 2000 can be accounted for by a rise in within-group inequality resulting from a relative increase in educated and experienced workers, as well as changes in heterogeneous returns to human capital.