This paper compares the sources of income inequality in Japan and the United States. We exploit two longitudinal … household surveys to decompose the income inequality in both countries. For Japan, we use Keio Household Panel Survey data and … Japan (0.329), corroborating well-established previous findings. In a second step, we decompose the income inequality in …

that Japan's high depreciation rate is caused by that country's high rate of technological progress. Hiqh depreciation …