Japan's income gap has widened to a record high, according to a report by The Yomiuri Shimbun on the 24th.

Ginza street in Tokyo. AFP Yonhap News

According to the results of the "2023 Income Redistribution Survey" released by the Ministry of Health, Labour and Welfare yesterday, the Gini coefficient, an indicator of income inequality (before taxes and social insurance contributions), rose to 0.5855 in 2023, an increase of 0.0155 points from the previous record high in 2021.

This is the worst figure for income inequality in this survey, which has been conducted approximately every three years since 1962.

The Gini coefficient is expressed as a number between 0 and 1, with a value closer to 1 indicating a larger disparity.

The deterioration of Japan's Gini coefficient is attributed mainly to an increase in the low-income population due to aging.

However, the Gini coefficient after taking into account income redistribution policies such as taxes, pensions, and welfare fell to 0.3825 in this survey, indicating that redistribution policies improved the income gap by approximately 34.7%.

The Ministry of Health, Labour and Welfare explained that the level of improvement due to redistribution functions is also at a record high, the newspaper reported.