Toshiaki Tachibanaki

Inequality and Poverty in Japan

This paper presents a brief survey of inequality and poverty in Japan. It shows empirical evidence on the extent of both inequality in income distribution and of poverty rates; the paper discusses the cause of increases in both these variables, and the implication of such trends. The paper goes on to argue the difference between inequality of opportunity and inequality of outcome and shows some related empirical evidence. Finally, the paper investigates the relationship between economic efficiency and equity, supposed to be in a trade-off relationship, and presents my personal view of that relationship and policy recommendations.

Labour supply and unemployment in Japan

Abstract The paper investigated the relationship between labour supply and unemployment (employment) in Japan. The paper focused on the discouraged worker effect which specifies that a large number of workers, in particular female labour forces, retire from the labour market in a recession. This lowers the rate of the (published) unemployment. The paper estimated the labour supply function, and presented the estimated figures of the modified (or adjusted) rate of unemployment. Finally, the Okuns coefficient was re-estimated by using this modified rate of unemployment.

The determination of the promotion process in organizations and of earnings differentials

Abstract The paper attempts to investigate the earnings distribution using Japanese male individual data. The model was estimated by applying a recursive multinomial logit framework. Much emphasis has been placed on investigating both the influence of hierarchy on the determination of earnings and the promotion process in hierarchical organizations. It was found that hierarchical position was very significant in determining the level of earnings. At the same time, hierarchical position (in other words, promotion) is largely determined by education, experience and unrecognized factors. It is proposed that education is used as a screening device in the promotion process.

Saving and the life-cycle: A Cohort analysis☆

Abstract This paper examines the ‘life-cycle hypothesis’ with reference to Japanese employees. The study is based on panel data created from successive cross-section data, which is expected to give better results than past studies. The sample was categorized by many elements. One important result is that empirical testing of saving and the life-cycle is crucially dependent upon the samples. It is found that the majority of Japanese employees have not accumulated wealth enough to assure consumption during retirement. The paper, however, did not reject a hump-shaped course of wealth accumulation under the assumption of myopic behavior.

Education, occupation, hierarchy and earnings

Abstract The paper attempts to estimate a recursive model of earnings distributions with education, occupation and hierarchy using Japanese male individual data. Particular emphasis is placed on the effect of hierarchy (job ranks) in determining wage levels. The model is estimated through a simultaneous recursive framework where the error terms are mutually dependent. It is found that hierarchical position is very significant in determining the level of earnings. The paper also discusses the influence of education and earnings distribution in general in Japan in comparison with France where a similar approach was adopted for investigating earnings distribution.

Education, occupation and earnings: A recursive approach for France

Abstract The purpose of this paper is to examine the relationship between education, occupation and earnings with an emphasis on the role of occupation in the determination of the effect of education on earnings. At the same time, several forms of human capital and other exogeneous variables are examined. The model is a recursive nature, and it was applied for French individual data. The result tells that despite very strong relationship between education and occupation, and between occupation and earnings, the relative significance of these relationships is greatly modified by different occupations (or classes). It was found also that men and women are considerably different not only as for the relationship between education, occupation and earnings, but also for several exogenous variables.

Economic Development in Asian Countries, and the Effectof Trade in Asia on Employment and Wages in Japan

There is a controversy in the USA and several European countries on whether or not an increase in imports in manufacturing goods from low-wage developing countries has major effects on employment and wages in industrialized countries. This paper examines the issue for Japanese imports, paying a particular attention to the effect of manufacturing imports from Asian countries on employment and wages in Japan. It is found that the effect has not been large to date, but that there could be negative effects on employment and, in particular, wages if imports from China and India were to increase substantially.

Testing the constancy of relative risk aversion: An analysis of japanese household financial asset data

Abstract The paper examined the constancy of relative risk aversion (RRA) with respect to total asset from Japanese individual asset data. The paper paid attention to the fact that a substantial portion of households do not hold any risky assets. Since the OLS yields a biased estimate, we modified the estimation procedure that derives the relationship between RRA and a discrete choice of holding risky assets. The result suggests that, contrary to our speculation, constant RRA is not consistent with the data, and that there is a moderate decreasing tendency linked to total asset but that its rate of change tapers off as total asset increases.

The Effect of Household Characteristics on Saving Behaviour and the Theory of Savings in Japan

The purpose of this paper is to estimate the household saving functions based on cross-section data which contain fruitful informations of individual observations. The paper also attempts to test various theories of saving behaviours empirically such as life-cycle saving hypothesis, or permanent income hypothesis, or several other theories. Since the data contain several useful variables which have not been used previously, particular attention is paid to the influence of those household characteristics on saving behaviour.

Lifetime income and public pension: An analysis of the effect on redistribution using a two-period analysis

Abstract This paper examines the redistributive effect of public pension programs in the framework of a two-period analysis. Private saving is also considered for comparison purposes as an alternative to public pension for assuring consumption during retirement. An emphasis is placed on investigating the effect of the various formulae for the determination of both the benefit level and the contribution, with the additional purpose of examining the effect of a maximum limit. The Japanese pension systems are evaluated on the basis of the above model framework in comparison with the British system.