News On Japan

Inequality growing again in Japan

TOKYO, Aug 23 (News On Japan) - Income inequality is growing again in Japan and approaching a record level due to increase in the elderly and lower incomes among active workers, according to the results of a survey released by the Ministry of Health, Labour and Welfare.

Initial income—income received before payment of direct taxes and receipt of any social benefits such as a pension—worsened in the survey compared to the previous study in 2017 and inequality is almost on a par with the worst-ever level achieved in 2014.

Adjusted after redistribution, which calculates inequality following the payment of taxes and receipt of benefits, improves the Gini level significantly to 0.3813.

“Results show the redistribution functions (such as taxes and benefits) have a certain effect,” a ministry statement said.

The ministry conducted the survey using the Gini coefficient that measures inequality. The index ranges between 0, which is perfect equality, and 1, which is perfect inequality.

Japan scored 0.0057 for initial income on the Gini coefficient in the survey conducted among 8,042 households from July to August, 2021.

In 2017, Japan’s Gini coefficient was 0.5594 and three years earlier had been 0.5704, the biggest-ever inequality gap since records began collation in 1962

Average household initial income was 4,234,000 yen, which grew to 5,042,000 yen following redistribution. Among elderly households comprising people aged 65 and older, initial income was 1,247,000 yen, which grew by 2.92 times after redistribution to 3,641,000 yen.

News On Japan
POPULAR NEWS

As Japan enjoys the economic boost from a surge in foreign tourists, the hot spring town of Atami has introduced a lodging tax in April to tackle overtourism—prompting backlash from Japanese travelers who question why they, too, must pay a fee meant for inbound tourism.

A Japanese emergency relief team dispatched by the government has begun operations in Mandalay, a region heavily affected by the recent earthquake in central Myanmar that has claimed more than 3,000 lives.

Shuri Castle, a symbol of Okinawa's Ryukyu heritage, suffered extensive damage in a devastating fire in October 2019 that destroyed the main hall and many other structures. The cause of the blaze remains unknown.

A deepening labor shortage in Japan’s construction industry is beginning to impact homebuyers, with some experiencing delays of more than six months before construction can even begin due to a lack of available carpenters.

The Imperial Household Agency launched an official YouTube channel on April 1st to introduce the activities of Emperor Naruhito and Empress Masako.

MEDIA CHANNELS
         

MORE Business NEWS

Over 20,000 people attended the Camping Car Show held last month in Osaka over two days, reflecting a growing interest in campers across Japan. What is driving this renewed popularity?

A deepening labor shortage in Japan’s construction industry is beginning to impact homebuyers, with some experiencing delays of more than six months before construction can even begin due to a lack of available carpenters.

The prototype line for next-generation semiconductors developed by Rapidus is now ready, as a nationwide initiative to boost Japan's chip industry takes a major step forward in Hokkaido.

The Japanese government approved a cabinet ordinance on April 1st to introduce a new pre-screening system for foreign companies investing in Japan. The revised regulation will take effect on May 19th.

The Bank of Japan's March Tankan survey, a key quarterly economic report, showed that business sentiment among large manufacturers has deteriorated for the first time in four quarters.

Tokyo has made it mandatory to install solar panels on newly built houses starting April 1st, as part of its broader effort to halve greenhouse gas emissions by 2030.

The new fiscal year began on April 1st, with companies across the Kansai region holding entrance ceremonies to welcome new employees.

Japan's new fiscal year began on April 1st, with companies across the country holding entrance ceremonies to welcome new employees.