The Economics Of Social Security In Japan

This book provides a comprehensive appraisal of social security in Japan, where traditionally the burden of welfare provision has been the main responsibility of the family and employers, rather than the state. However, an ageing population, changes in family structure and continued recession has led to an urgent reappraisal of this situation. The book begins by examining the social security system in Japan as a whole, before focusing on specific issues. These include public and occupational pensions, medical care and childcare, and the availability and accessibility of social infrastructure for the old and handicapped. In each case, the distinguished authors address the unique problems associated with Japan and propose practical policy recommendations for social security reform. The book also discusses the future path of Japanese welfare transition and explores the advantages and disadvantages of the private sector model for welfare provision compared to the public sector model. The expert contributors, including both Japanese and international specialists, provide a critical evaluation of social security reform in Japan, set against the background of future demographic and economic trends. This book will appeal to all scholars of public policy, welfare policy and public finance. It will also be of interest to anyone working on the merits and demerits of different social security systems.

This ninth phase of the International Social Security project, which studies the experiences of twelve developed countries, examines the effects of public pension reform on employment at older ages. In the past two decades, men’s labor force participation at older ages has increased, reversing a long-term pattern of decline; participation rates for older women have increased dramatically as well. While better health, more education, and changes in labor-supply behavior of married couples may have affected this trend, these factors alone cannot explain the magnitude of the employment increase or its large variation across countries. The studies in this volume explore how financial incentives to work at older ages have evolved as a result of public pension reforms since 1980 and how these changes have affected retirement behavior. Utilizing a common template to analyze the developments across countries, the findings suggest that social security reforms have strengthened the financial returns to working at older ages and that these enhanced financial incentives have contributed to the rise in late-life employment.

This book integrates the fundamentals of quantitative significance, using existing estimates of the elasticities of demand for tax, health insurance, and medical services in a static microsimulation model. It serves as a guide to the financial and social basics of health insurance and provides the reader with the intellectual groundwork indispensable for understanding the incorrect assumptions about the elasticities of demand and pattern of tax and health insurance. Most countries feel constant pressure because expenditure is increasing and resources are scarce. The topics addressed in this book including several frameworks leading to over-insurance, excess demand for medical care, and rapid expenditure growth in the medical care sector. Illustrated by carefully chosen examples and supported by extensive data analyses, this book is highly recommended to readers who seek an in-depth and up-to-date integrated overview of the ever-expanding theoretical and quantitative fields of containing costs, increasing funding for health services, or both.

The present study analyzes the livelihood security system of contemporary Japan in international comparison from a historical and gender perspective. It posits ‘livelihood security systems’ rather than ‘welfare states’ or ‘welfare regimes’ as its object of analysis to enter the role of non-governmental institutions and of governmental policies reaching beyond income transfers into vision. Based on rich statistical materials, the evolution of Japan’s livelihood security system in recent decades is traced to reveal a rigid male breadwinner orientation increasingly out of step with social realities. The need for remedying the gender bias built into Japan’s social insurance schemes has been politically highlighted since the late 1990s, but legislative action has continued to be deferred. The author argues that at present the livelihood security system of Japan is not only dysfunctional, but actually functioning in reverse, in a sense of furthering social exclusion. The study concludes with suggestions for a possible reconstruction of Japan’s social security system, arguing for an increased role of the ‘third sector’ or ‘social economy’ in livelihood security and care provision. This book will appeal to scholars and students with an interest in social policy, welfare economics and gender studies, as well as Japanese politics and society.

The present study analyzes the livelihood security system of contemporary Japan in international comparison from a historical and gender perspective. It posits ‘livelihood security systems’ rather than ‘welfare states’ or ‘welfare regimes’ as its object of analysis to enter the role of non-governmental institutions and of governmental policies reaching beyond income transfers into vision. Based on rich statistical materials, the evolution of Japan’s livelihood security system in recent decades is traced to reveal a rigid male breadwinner orientation increasingly out of step with social realities. The need for remedying the gender bias built into Japan’s social insurance schemes has been politically highlighted since the late 1990s, but legislative action has continued to be deferred. The author argues that at present the livelihood security system of Japan is not only dysfunctional, but actually functioning in reverse, in a sense of furthering social exclusion. The study concludes with suggestions for a possible reconstruction of Japan’s social security system, arguing for an increased role of the ‘third sector’ or ‘social economy’ in livelihood security and care provision. This book will appeal to scholars and students with an interest in social policy, welfare economics and gender studies, as well as Japanese politics and society.

Japanese and American economists assess the present economic status of the elderly in the United States and Japan, and consider the impact of an aging population on the economies of the two countries. With essays on labor force participation and retirement, housing equity and the economic status of the elderly, budget implications of an aging population, and financing social security and health care in the 1990s, this volume covers a broad spectrum of issues related to the economics of aging. Among the book's findings are that workers are retiring at an increasingly earlier age in both countries and that, as the populations age, baby boomers in the United States will face diminishing financial resources as the ratio of retirees to workers sharply increases. The result of a joint venture between the National Bureau of Economic Research and the Japan Center for Economic Research, this book complements Housing Markets in the United States and Japan (1994) by integrating research on housing markets with economic issues of the aged in the United States and Japan.

Social Security Programs and Retirement around the World represents the second stage of an ongoing research project studying the relationship between social security and labor. In the first volume, Jonathan Gruber and David A. Wise revealed enormous disincentives to continued work at older ages in developed countries. Provisions of many social security programs typically encourage retirement by reducing pay for work, inducing older employees to leave the labor force early and magnifying the financial burden caused by an aging population. At a certain age there is simply no financial benefit to continuing to work. In this volume, the authors turn to a country-by-country analysis of retirement behavior based on micro-data. The result of research compiled by teams in twelve countries, the volume shows an almost uniform correlation between levels of social security incentives and retirement behavior in each country. The estimates also show that the effect is strikingly uniform in countries with very different cultural histories, labor market institutions, and other social characteristics.

This book, based on economics and game theory, analyzes the changes that Japan is now facing as a reflection of changes in Japanese families and society. The author presents a simple framework for the structural relationship among markets, communities including families, and the state; and uses it to explain the changes that have occurred in Japanese society. Social changes have created a series of social problems such as population ageing, poverty, and regional disparities, which require changes in public policies. The book provides readers with rich information about the Japanese social security system, social policies and regional policies by explaining why they are developed, how they are designed, and what challenges they face. Readers will find that the transformation of Japanese society is not really a special case but a fairly common one that many developed countries have experienced and many developing countries are going to experience. The book will be useful not only to those who are interested in Japanese society and public policies but also to anyone who is interested in the transformations of families, communities, and roles of the state in a modern market economy.

Contrary to all expectations, Japan's long-term recession has provoked no sustained political movement to replace the nation's malfunctioning economic structure. The country's basic social contract has so far proved resistant to reform, even in the face of persistently adverse conditions. In Race for the Exits, Leonard J. Schoppa explains why it has endured and how long it can last. The postwar Japanese system of "convoy capitalism" traded lifetime employment for male workers against government support for industry and the private (female) provision of care for children and the elderly. Two social groups bore a particularly heavy burden in providing for the social protection of the weak and dependent: large firms, which committed to keeping their core workforce on the payroll even in slow times, and women, who stayed home to care for their homes and families. Using the exit-voice framework made famous by Albert Hirschman, Schoppa argues that both groups have chosen "exit" rather than "voice," depriving the political process of the energy needed to propel necessary reforms in the system. Instead of fighting for reform, firms slowly shift jobs overseas, and many women abandon hopes of accommodating both family and career. Over time, however, these trends have placed growing economic and demographic pressures on the social contract. As industries reduce their domestic operations, the Japanese economy is further diminished. Japan has also experienced a "baby bust" as women opt out of motherhood. Schoppa suggests that a radical break with the Japanese social contract of the past is becoming inevitable as the system slowly and quietly unravels.