Japan is a giant of the global economy, but it has a persistent gender gap in wages that not only represents inequality but also has implications for economic performance. The wage gap between women and men is the difference between female and male median earnings, typically expressed as a percentage of male earnings. In Japan, women who work full-time average just approximately 75% of the amount of money that men take home, illustrating an unadjusted difference of about 25%. It is one of the highest of any OECD; indeed, Japan has the fourth-largest gender pay gap among 38 OECD countries. In comparison, women in Sweden make more than 90% of what men make (a differential of less than 10%), showing just how far behind some of its peers Japan is despite closing the gap incrementally. The following blog post looks at the existing state of Japan's gender pay gap using reliable figures, and how the gap impacts economic growth and labor productivity. It will apply development economics theory—Human Capital Theory and Amartya Sen's Capability Approach—to frame the issue, compare Japan's endeavor with that of Sweden, Norway, and South Korea, explore structural and cultural barriers, and recommend policies to bridge the gap while promoting inclusive growth. The aim is to make a clear but scholarly case for why it is not only a matter of social justice, but an economic imperative that Japan close its gender pay gap.
References (APA style & Hyperlinked):
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Aki Tanaka & Thelma Akpan (2023, September 12). Japan Addresses the Wage Gap by Requiring Gender Pay Gap Disclosure. Japan Society.
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Kyodo News (2024, September 8). Women’s wages 70-80% of men’s in Japan as gender gap remains. Kyodo News.
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OECD (2023). Gender equality and work: Key messages. OECD.org.
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OECD (2024). Employment Outlook 2024 – Japan Country Note. OECD.
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Voronoi/Visual Capitalist (2024, Mar 31). The Largest Gender Pay Gaps in OECD Countries.
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CFR – Council on Foreign Relations (n.d.). Spotlight on Japan: Growing Economies Through Gender Parity.
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International Monetary Fund (2023, Nov 13). Japan’s Economy Would Gain With More Women in Science and Technology. IMF News.
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Nikolka, T. (2013). The Gender Wage Gap in OECD Countries. CESifo DICE Report, 11(1), 69-72.
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Urabe, E. (2023, Sep 4). Women in Japan Do Over Half a Trillion Dollars More of Unpaid Housework Than Men. TIME/Bloomberg.
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OECD (2012). OECD Employment Outlook 2012 – Gender wage gap data. (Referenced in Nikolka, 2013).
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World Economic Forum (2023). Global Gender Gap Report 2023. (Used for contextual understanding of rankings).
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Ministry of Health, Labour and Welfare, Japan (2023). Basic Survey on Wage Structure. (Data referenced via Kyodo News 2024).