Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/197717 
Year of Publication: 
2018
Series/Report no.: 
ISER Discussion Paper No. 1045
Publisher: 
Osaka University, Institute of Social and Economic Research (ISER), Osaka
Abstract: 
Wage inequality between individuals has changed little in Japan in recent times unlike in other developed countries. We examine changes in wage inequality within and between establishments during the prolonged stagnation period in Japan. Using a micro-level worker-establishment dataset from 1991 to 2012, we find changes in inequality during the 1990s. First, an increase in the variance in the establishment fixed effects expanded men's between-establishment inequality. Meanwhile, a reduction of returns to tenure decreased men's within-establishment inequality and thus suppressed rising individual wage inequality. Second, we find a different trend in women's wage inequality. Between-establishment inequality was larger than that of men in the early 1990s. However, since the structure of wage inequality in men changed significantly, the composition of inequality between men and women has become similar in recent years. Finally, the assortativeness between workers and establishment rose for both sexes.
Subjects: 
inequality trends
returns to tenure
within- and between-establishment inequality
JEL: 
J21
J31
M52
Document Type: 
Working Paper

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