Is There a Glass Ceiling in Japan? : Exploring the Gender Wage Differential across the Wage Distribution

Abstract

Comparing with the other developed countries, the gender wage differential is greater in Japan. One of the reasons is the promotion differentials between male and female that is called “the glass ceiling effect”. Using Keio Household Panel Survey data for 2004-2008 and Quantile regression model, the paper explored whether there is glass ceiling effect in Japan. In addition, the paper examined the glass ceiling effect by firm size in Japan.

The main conclusions are as follows. First, in all firms (small firms, middle-sized firms and large firms), comparing with the lower wage quantiles, the gender wage differential becomes widen toward the top of the wage distribution. It is shown that there is the glass ceiling effect in Japan.

Second, in the small firms, comparing the higher wage quantiles, the gender wage differential is greater at the lower wage quantiles. On the other hand, in the middle-sized firms and the large firms, comparing the lower wage quantiles, the gender wage differential is greater at the higher wage quantiles. It is found that there are differences of the glass ceiling effect by firm size.

Third, at the lower wage quantiles, the gender wage differential in Japan is litter than the other developed countries. On the other hand, at the higher wage quantiles, the gender wage differential in Japan is greater than the other developed countries. It is found that the gender wage differential in Japan increases throughout the wage distribution and accelerate in the upper. It is shown that the glass ceiling effect in Japan is remarkable than the other developed countries.