Trends in Wage Inequality Within and Between Establishments : Evidence from Japanese Employer–Employee Matched Data（in Japanese : 事業所内・事業所間賃金格差の変遷 日本の事業所―労働者結合データによる考察）

We decompose the Japanese wage inequality into within- and between-establishment inequalities, focusing on the role of establishments in the wage determination. We use a micro level data set from the Basic Survey on Wage Structure (1991–2012), which is an employer–employee matched data. The results suggest the following three points. First, in the early 1990s, the contribution of between-establishment inequality in the total wage inequality was larger for female than for male. Second, the between-establishment inequality among males was getting larger from the late 1990s. Third, the rising of the between-establishment inequality among females was so limited. We find that the expansion of between-establishment inequality stems from the rising dispersion in the establishment fixed effects and from the increase in assortativeness of the matching between workers and establishments. The larger change in male inequality provides the convergence of the composition of within- and between-establishment inequality between men and women during the period.(153 words)