Redistribution of Personal Income in Japan : A Cross-Country Comparison(in Japanese)

The report by OECD, Organization for Economic Co-operation and Development, "Economic Survey of Japan 2006", shows Japan is equal in distribution of before-tax-income and not equal in distribution of after-tax-income in comparison with the other OECD countries. This article analyzes redistributive effects of taxes and government transfers on personal income in Japan by international comparisons, more deeply than above-mentioned OECD report. The effects of income taxes, social security contributions and social security benefits are examined by cross-country comparisons in the difference between before-tax and after-tax Gini Coefficients etc. Data are Comprehensive Survey on Living Standard by Ministry of Welfare and Labor for Japan and the preceding research papers etc. for other countries. The followings are the main findings: 1.Redistribution of personal income is found to be small in Japan. Both transfers to the working age populations and taxes have limited impacts on inequality reduction. Low tax rate for middle class raises relative poverty rate. 2.Possibility is indicated that limited family benefits and tax allowance contribute to higher relative poverty rate of families with children.