ABSTRACT
This chapter illustrates the trends of economic inequality in South Korea, Japan, and Taiwan. It discusses the trend of social exclusion allegedly caused by growing economic inequality. The chapter examines that the role of labour market institutions on inequality, and explores the impact of political institutions on inequality with descriptive and theoretical attention. It concerns how well labour market institutions and political factors can explain economic inequality in East Asia. Economic growth and near-full employment have efficiently complemented the lack of the public provision of welfare in East Asian countries. The chapter examines social repercussions of inequality and provides some theoretical perspectives that support these relationships. Scholars have argued that possible political consequences of economic inequality are political polarization, unequal political representation, and lowered political participation. East Asian labour market institutions can be characterized by strong legacies of the political economy coalition between states and businesses since the start of industrialization and full-scale economic development.
