Skip to main content

Posts

Showing posts from October, 2020

A Look at Poverty in Japan (Before Pandemic)

  Japan has often been regarded as a country that has equal opportunities for all. However, it seems as if poverty and wealth inequality in Japan had been steadily getting worse for the past two decades. According to data from the OECD & World Bank, the rate for relative poverty in Japan is 15.7% (higher than OECD Avg. of 11.7%). It also shows that Japan's middle class is slowly becoming smaller while the share of low-income households rises (Huang, Eustance). Could age be a factor in this issue? It is a known fact that Japan's demographics show a largely aging population with the percentage of those aged 65 and older increasing while the percentage of the population below 65 declines. Many Japanese companies emphasize company loyalty and taking care of older workers who tend to earn higher salaries as they gain more seniority, but compared to other countries, Japan doesn't have "executive pay" that creates a wage gap between employees and executives (Huang, E...

Income Inequality (Lorenz Curve and Gini Coefficient

  Above is the Lorenz Curve for Japan in the years 2008 and 2013. The Gini Coefficient for 2008 was 0.348 and the Gini Coefficient for 2013 was 0.329. The change in the Gini coefficient as well as the change in the distribution of income in each quintile shows that the distribution of income is becoming slightly more equal (lower 80% of people have gained more wealth).