SustainablePathtoInclusiveGrowthinJapan:HowtoTackleIncomeInequality?JapanPurvaKheraandYunGaoSIP/2024/026IMFSelectedIssuesPapersarepreparedbyIMFstaffasbackgrounddocumentationforperiodicconsultationswithmembercountries.ItisbasedontheinformationavailableatthetimeitwascompletedonApril152024.ThispaperisalsopublishedseparatelyasIMFCountryReportNo24/119.2024JUN©2024InternationalMonetaryFundSIP/2024/026IMFSelectedIssuesPaperAsiaandPacificDepartmentSustainablePathtoInclusiveGrowthinJapan:HowtoTackleIncomeInequality?PreparedbyPurvaKheraandYunGaoAuthorizedfordistributionbyRanilSalgadoJune2024IMFSelectedIssuesPapersarepreparedbyIMFstaffasbackgrounddocumentationforperiodicconsultationswithmembercountries.ItisbasedontheinformationavailableatthetimeitwascompletedonApril15,2024.ThispaperisalsopublishedseparatelyasIMFCountryReportNo24/119.ABSTRACT:MarketincomeinequalityinJapanhasbeenonasteadyrisesincethe1980s,andisnowclosetotheOECDaverage.Grossanddisposableincomeinequality,ontheotherhand,haverisenmuchlessbutremainhigherrelativetoseveralcomparatorcountries.Thispaperemploysinequalityindexdecompositionsbyincomesourceusinghouseholdpanelsurveydatafrom2010-19toidentifythefactorsdrivingincomeinequalityinJapan.Resultsindicatethatwhileincreaseintheemploymentoffemalesandtheelderlyinthelastdecadehashelpedlowerincomeinequality,thishasbe...
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