Japan Income Inequality Largest on Record in 2023

Tokyo, Dec. 23 (Jiji Press)–Income inequality in Japan was the largest in 2023, reflecting an increase in elderly households earning less than working-generation households, a welfare ministry survey showed Tuesday. The Gini coefficient, a common measure of income inequality ranging from zero to 1, rose 0.0155 point from the previous survey in 2021 to a record 0.5855. A reading closer to 1 indicates greater inequality. Meanwhile, the index after redistribution, or the deduction of taxes and social insurance premiums from initial income and the addition of social security benefits, stood at 0.3825, up 0.012 point. It has remaind almost flat since 1999. The survey has been conducted almost every three years since 1962. The latest survey covered 7,430 households in July-August 2023, with valid responses coming from 40.4 pct of them. The 2023 survey also showed that the average initial income was 3,848,000 yen, while the average income after redistribution was 4,677,000 yen. END [Copyright The Jiji Press, Ltd.]