Research Programs: Human Capital

Wage Inequality and Industrial Dynamics

Project Leader/Sub-Leader

KAMBAYASHI Ryo (Faculty Fellow)



Given the increasing between-firm wage inequality, this project firstly aims to document the transition of wage inequality in Japan up to recent years. Matching the Basic Survey on Wage Structure (Ministry of Health, Labor and Welfare) with the Basic Survey of Japanese Business Structure and Activities (Ministry of Economy, Trade and Industry) at firm level, the project will shed light on the correlation between between-firm wage inequality and between-firm productivity inequality. The project especially focuses on the transition of the lower tail of distributions and its relation to the exit behavior. On the other hand, the project secondly considers the slow entrance of new business in Japan. Applying the indexation of structured management practices similarly to the Management and Organizational Practices Survey (JP-MOPS), the project intends to construct a three-year panel study to track the newly created business to address the classical question of whether better structured management induces the growth of businesses or whether the growth of businesses leads to better management practices. Together with the transition of lower tail of wage/productivity distribution, exploring the Japanese environment of new businesses will provide us with a useful insight into the dynamics of industry and labor markets in Japan, which is closely related to the effect of governmental subsidy programs.

February 1, 2022 - July 31, 2024

(During the research project period, the research activity period is set from February 1, 2022 to January 31, 2024, and the data usage reporting period is set from February 1, 2024 to July 31, 2024.)