Reality and Awareness of Income Inequality in Japan

Abstract

This paper analyzes the income inequality, based on government income statistics and an attitude survey. First, the paper describes the present income inequality in Japan by using the Gini coefficients, and the income share of the top and bottom income classes. Second, by employing the Japan-U.S. international survey, this paper analyzes the cause of the increasing awareness that Japan’s income gap is widening. Between these two countries, their distinct value judgments about the causes for the gap influence how they perceive it. The Japanese have negative perceptions about the income gap when they perceive it to be influenced by talent, academic background or luck, and this perception seems relatively uncommon in the U.S. A large percentage of Japanese also think one’s income is decided by talent, academic background or luck, although it should not be. Such disagreements between the desired and perceived determinants of income are thought to raise their perception of the gap.