RIETI Report January 27, 2023

Path to Correcting Gender Inequality: Harness capital market forces

Dear Readers,
Welcome to RIETI Report.
This bi-weekly newsletter will keep you updated with the recent columns, event information and research results by RIETI fellows and other leading economists in Japan and around the world.

In this edition we present topics related to correcting gender inequality at the workplace. The workplace gender inequality figure for Japan is among the highest of the member states of the OECD. RIETI Research Associate Naomi Kodama examines various factors behind the situation and how it can be mitigated by incentivizing companies. The mindset of investors can act as a driver of the narrowing of workplace gender inequality.

We hope you will enjoy it. If you have any feedback, we would love to hear from you (news-info@rieti.go.jp).
Editors of RIETI Report (Facebook: @en.RIETI / Twitter: @RIETIenglish / URL: https://www.rieti.go.jp/en/)

This month's featured article

Path to Correcting Gender Inequality: Harness capital market forces

KODAMA NaomiResearch Associate, RIETI

The workplace gender inequality figure for Japan is among the highest of the member states of the Organization for Economic Cooperation and Development (OECD). According to data from the Japan Institute for Labour Policy and Training, the share of women in management posts in Japan in 2020 was as low as 13%, compared with 41% in the United States, 37% in the United Kingdom, 36% in France, 28% in each of Germany and Denmark, and 16% in South Korea.

According to statistics prepared by the OECD, while the wage gender inequality in Japan has gradually been narrowing, the median income for full-time female workers in Japan was 22% lower than the median income for their male equivalents in 2021. The gender gap was the second largest among the OECD member states, after the 31% difference in South Korea, and is much larger than the differences of 5% in Denmark, 7% in Sweden, 14% in Germany, 14% in the United Kingdom, and 17% in the United States.

The figure below shows the wage gender gap among workers aged between 30 and 55 in 15 developed countries as estimated by a research group in which this author is participating. Negative figures indicate the shortfall of wages for women relative to wages for men in percentage terms.

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Related articles

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YAMAGUCHI Kazuo (Visiting Fellow, RIETI)

“A Comparative Study of Gender Inequality: Occupational segregation in Japan and Korea”
YOUM Yoosik (Visiting Fellow, RIETI) / YAMAGUCHI Kazuo (Visiting Fellow, RIETI)

Our latest discussion papers

“Dissimilar FTA Strategies of Japan and the U.S.: An analysis of the product-specific rules of origin”
ANDO Mitsuyo (Keio University) / URATA Shujiro (Chairman, RIETI) / YAMANOUCHI Kenta (Kagawa University)

“School Accountability and Student Achievement: Neighboring schools matter”
MOROZUMI Atsuyoshi (University of Nottingham) / TANAKA Ryuichi (Faculty Fellow, RIETI)

“The Rank of Socioeconomic Status within a Class and the Incidence of School Bullying and School Absence”
INOUE Atsushi (Nippon Institute for Research Advancement) / TANAKA Ryuichi (Faculty Fellow, RIETI)

“Inefficiency in School Consolidation Decisions”
TANAKA Ryuichi (Faculty Fellow, RIETI) / Eric WEESE (University of Tokyo)

[List of discussion papers]
[List of upcoming and past symposiums]
[List of upcoming and past BBL seminars]

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