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Income Distribution and the Standard of Living

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Abstract

This chapter aims to review the history of the evolution of distribution of income, its redistribution, and social policies in Japan, with specific attention to their impact on the standard of living and poverty alleviation. Japan has been viewed as both an example of sustained economic growth and a leap forward in terms of human development. For example, the United Nations Development Programme’s Human Development Report 1996 (UNDP 1996, Box 2.3, p. 53) refers to the case of Japan as one in which dual success in terms of growth and human development was realized through a commitment to equity in opportunities. According to the report, the base for egalitarian development was built in the postwar period, when radical reforms were introduced to transform Japan into a more democratic society, and the major achievement in human development in the early stages of development reinforced the egalitarian growth of the postwar period. However, since the 1990s, many authors have focused on the increase in inequality in Japan (for example, Tachibanaki 1998, 2004, and 2006). Thus, in order to examine the statement of the Human Development Report 1996, this paper reviews the history of the evolution of income distribution, income redistribution, and social policies not only in the postwar period but also in the prewar period, while also considering the extent to which these policies influenced the standard of living.

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© 2012 Hiroki Nogami

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Nogami, H. (2012). Income Distribution and the Standard of Living. In: Toyoda, T., Nishikawa, J., Sato, H.K. (eds) Economic and Policy Lessons from Japan to Developing Countries. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230355019_6

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