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Inequality will worsen in Japan

Friday, April 30, 2021

Significance

Greater labour force participation by women has mixed effects on inequality: it generates additional income, but with lower wage rates and benefits than for men.

Impacts

  • The pandemic has intensified trends towards inequality through disproportionate earnings reductions among non-regular and female workers.
  • Inequality will grow if the government's unemployment benefits do not respond to pandemic job losses.
  • Policies promoting entrepreneurship could increase productivity and produce more world-class firms, but also increase inequality.

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