Income gap narrowed
After WWII ended, Japan’s economic development strategy initially focused on recovery of key industries and of
large size enterprises.
Small businesses and non-manufacturing sectors were left behind in terms of productivity, wages and working
conditions. The productivity gap continued to widen during the rapid growth period. Nevertheless, overall labor
shortages as a result of the rapid growth eventually pushed up the wage levels even at small and non-manufacturing
companies. The wage gap by company size narrowed sharply from 1955 to 1965, but that trend reversed afterwards