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 betweengroup 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.
wage inequality, heterogeneous returns to human capital, composition effects, seniority wages
YAMADA, Ken and KAWAGUCHI, Daiji.
Changing Unchanged Inequality: Higher Education, Youth Population, and the Japanese Seniority Wage System. (2012). Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/1414
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