28/06/2006

Analysis of Income and Wealth Inequality by Age

Tatsuya Ishikawa 

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The consensus view is correct in that overall income inequality is growing in Japan largely as a result of the population's aging--the growing proportion of elderly households accentuates their traditionally large income inequality. However, household surveys also reveal that income inequality is growing rapidly in young households. In addition, inequality in financial wealth is expanding as more households of all ages own no financial assets other than cash. Since recent income and wealth inequalities tend to persist, these results raise serious concerns that young households will be financially vulnerable in the long term.

Tatsuya Ishikawa

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