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Top Income Shares in Japan from the Survey and Tax Data in 2014 and 2019: Following the Distributional National Accounts Guidelines

Author

Listed:
  • Masahiro Mikayama

    (Visiting Scholar, Policy Research Institute, Ministry of Finance)

  • Tomotsugu Imahori

    (Visiting Scholar, Policy Research Institute, Ministry of Finance)

  • Taro Ohno

    (Chief Economist, Policy Research Institute, Ministry of Finance)

  • Yasutaka Yoneta

    (Senior Economist, Policy Research Institute, Ministry of Finance)

  • Junji Ueda

    (Director-General, Policy Research Institute, Ministry of Finance)

Abstract

This paper shows the results of estimating top income shares in Japan using the 2014 and 2019 household survey dataset and the newly aggregated tax dataset from income tax microdata following the Distributional National Accounts (DINA) Guidelines. The guidelines are presenting the concepts, data sources, and methods to keep consistency for international comparison and used for making data series in the World Inequality Database (WID). By following the DINA procedure, we combine the survey dataset and the newly aggregated income tax dataset for 2014 and 2019 using the method presented by Blanchet et al. (2022). In addition, we consider various types of incomes which are not included in the survey and tax datasets but are included in the Net National Income (NNI) concept. The main results by using the most recent Japanese survey and tax data show that the top 1% income share in Japan was 8.44%, and the top 10% income share was 33.79% in 2019, which are much lower than the results for the United States and France presented in the World Inequality Report 2022 (Chancel et al., 2021).

Suggested Citation

  • Masahiro Mikayama & Tomotsugu Imahori & Taro Ohno & Yasutaka Yoneta & Junji Ueda, 2023. "Top Income Shares in Japan from the Survey and Tax Data in 2014 and 2019: Following the Distributional National Accounts Guidelines," Discussion papers ron371, Policy Research Institute, Ministry of Finance Japan.
    • Handle: RePEc:mof:wpaper:ron371
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    File URL: https://www.mof.go.jp/pri/research/discussion_paper/ron371.pdf
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    References listed on IDEAS

    as
    1. Garbinti, Bertrand & Goupille-Lebret, Jonathan & Piketty, Thomas, 2018. "Income inequality in France, 1900–2014: Evidence from Distributional National Accounts (DINA)," Journal of Public Economics, Elsevier, vol. 162(C), pages 63-77.
    2. Thomas Blanchet & Ignacio Flores & Marc Morgan, 2022. "The weight of the rich: improving surveys using tax data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 119-150, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Top income shares; Inequality; Distributional National Accounts (DINA); Survey data; Tax data; Net National Income (NNI);
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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