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The factors of income inequality and the coordination between income distribution policy and social security
Author(s)Yoshihiro Kaneko
Corporate AuthorNational Institute of Population and Social Security Research, Japan
Journal titleReview of Population and Social Policy, no 10, 2001
Pagespp 55-80
SourceNational Institute of Population and Social Security Research, Hibiya Kokusai Building 6th floor, 2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan. www.ipss.go.jp
KeywordsPoverty ; Income [older people] ; Social economics ; Social security [generally] ; Social policy ; Japan.
AnnotationRecently, social security reform in Japan has advanced so that the relationship between cost and benefits would be adjusted to satisfy the intergenerational equity in the rapid ageing of Japanese society. However, empirical studies on Japanese income distribution have revealed expansion of income inequality since the late 1980s, recognising the importance of income redistribution policy in the social security system. In this paper, the influence of the cost and benefits of social security is investigated by decomposing the Gini coefficient into those of total earnings, redistributed income, taxes, social security contributions, and social security benefits. Although social security plays a role in income redistribution compared with the distribution of total earnings, the relative Gini coefficient of pension benefits and medical services tend to be larger than that of total earnings. The structure of cost and benefits of social security and the role of income redistribution policy should be reconsidered, so that co-ordination between intergenerational equity and intragenerational equity can be achieved in the social security system. (RH).
Accession NumberCPA-011211208 A
ClassmarkW6: JF: W4: TYA: TM2: 7DT

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