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The Gender Gap in the Japanese Labor Market

The Japan Institute for Labour Policy and Training
Thursday February 26, 2009
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Among the labor economists who pay careful attention to international comparisons of labor market outcomes, the gender wage gap of Japan, as well as that of Korea, is known to be the largest among OECD countries.

The hourly wage in Japan of permanent and regular female workers relative to male workers, which is not adjusted for the observed characteristics of workers, was 59.1 in 1990, while the corresponding figure for 2000 was 66.0; this indicates that there has been only a 6.9 percentage point gender wage convergence in this 10-year period. This wage convergence, however, may have been caused by the convergence of the characteristics of workers across genders. Indeed, Akira Kawaguchi reports that 60% of unadjusted wage convergence between 1990 and 2000 is explained by the convergence of the observed characteristics of workers across genders, based on a large sample from the Basic Survey of Wage Structure. He pointed out that in particular the convergence of years of job tenure explained the gender wage convergence.

With this persistent gender wage gap as a background, the Japan Labor Review, published by The Japan Institute for Labour Policy and Training, has published a special issue aiming to explain the mechanisms behind the gender wage gap in Japan. It contains five papers that are largely classified into two categories. In the first category are two papers that attempt to explain the gender wage gap by occupational segregation. The second category consists of three papers that examine the relationship between female employment and the performance of firms.

The link below lets you download the pdf file (1.9MB) of this special issue.

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