How Much Effect Does Human Capital Have on Interregional Wage Differentials in Japan?

The purpose of this paper is to examine how much the regional distribution of human capital affects the interregional wage differentials in Japan. To measure the impact of them, the Gini coefficient was simulated in case where there was no difference in the distribution of human capital between prefectures and compared with the actual value. The result shows that more than half of the actual Gini coefficients can be explained by the regional distribution of human capital.