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Factors Of Interregional Income Inequality In Postwar Japan: Theil Decomposition And Gap Accounting Analyses

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  • Mitsuhiko Kataoka

Abstract

This study empirically identifies some factors of interregional income inequality in postwar Japan during the period 1955–2005 using a decomposition analysis with a Theil L index and a gap accounting analysis. One major empirical finding was that interregional inequality in per capita GDP during the period 1955–2005 showed a double peaked M†shaped curve, which was predominantly attributed to interregional inequality in labor productivity. The sectoral decomposition analysis revealed that the factors that caused fluctuations in interregional inequality in labor productivity differed from year to year. The fluctuations during the period 1960–1980 were caused by an intersectoral equilibrating process between the tertiary sector and other sectors, whereas that the fluctuations that occurred in the late 1980s and early 1990s resulted from interregional disequilibrating and equilibrating processes within the tertiary sector.

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  • Mitsuhiko Kataoka, 2008. "Factors Of Interregional Income Inequality In Postwar Japan: Theil Decomposition And Gap Accounting Analyses," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 20(2), pages 135-150, July.
    • Handle: RePEc:bla:revurb:v:20:y:2008:i:2:p:135-150
    DOI: 10.1111/j.1467-940X.2008.00147.x
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    Cited by:

    1. Elena Lasarte & Miguel Angel Marquez Paniagua, 2014. "Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index," Working Papers. Serie EC 2014-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Mitsuhiko Kataoka & Kodrat Wibowo, 2014. "Decentralization and Spatial Allocation Policy of Public Investment in Indonesia and Japan," Working Papers in Economics and Development Studies (WoPEDS) 201403, Department of Economics, Padjadjaran University, revised Feb 2014.
    3. Miguel A. Márquez & Elena Lasarte-Navamuel & Marcelo Lufin, 2018. "Isolating Neighborhood Components of Regional Inequality," International Regional Science Review, , vol. 41(5), pages 483-509, September.
    4. Mitsuhiko Kataoka, 2014. "Trends in the regional allocation of public investment in the post-bubble Japanese economy," Letters in Spatial and Resource Sciences, Springer, vol. 7(3), pages 205-212, October.

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