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Japan in the 21 st Century Robert Croker Japanese Society II: Contemporary Japan Center for Japanese Studies Nanzan University
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Page 1: Japan in the 21st Century

Japan in the 21st Century

Robert Croker

Japanese Society II: Contemporary Japan

Center for Japanese Studies

Nanzan University

Page 2: Japan in the 21st Century

Contents

1. demographic change:

demography is destiny

2. economic change:

macroeconomic blues

3. socioeconomic change:

(not) sharing the pie

Page 3: Japan in the 21st Century

1. Demographic Change:

demography is destiny

Page 4: Japan in the 21st Century

Japan’s population

Page 5: Japan in the 21st Century

life expectancy at birthGINI Country Report Japan

Page 59

Figure 3.15: Life expectancy at birth by gender

Sources:  Complete  L

i

fe  Table  and  Ab ridged  Life  Table  (Statistics  and  Information  De p artment,  Minister’s  

Secretariat, MHLW).

Note: People born in Okinawa prefecture are excluded from calculations before 1970.

Health is not only measured by life expectancy. Living actively is another important measure of health.

Comprehensive Survey on Living Conditions (MHLW) enquires about “self-reported state of health”  

and  “frequency  of  visits to a doctor.” The report states that about 8% of respondents had some health

problems and went to clinics or hospitals in 2010. The report also shows that the number of

unhealthy people increased between 1998 and 2007, and subsequently decreased. Considered that

Japan’s  economy was in a fairly severe state between 1998 and 2001, relatively good state between

2001 and 2007, and subsequently in a little worse state, the state of health of people seems not to

move simply in accordance with economic conditions, although the increase in the number of

unhealthy people may be partly due to population aging.

Comprehensive Survey on Living Conditions also asks respondents about their health consciousness

and subjective health conditions. Figure 3.16 shows differences in subjective health between those

with different educational attainments. People with low educational levels report an unhealthy state,

60

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(years)

Life expectancy at birth, female (years) Life expectancy at birth, total (years)

Life expectancy at birth, male (years)

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

Page 6: Japan in the 21st Century

birth and death rates

Page 7: Japan in the 21st Century

ageing Japan

Page 8: Japan in the 21st Century

population pyramid

Page 9: Japan in the 21st Century

2. Economic Change:

macroeconomic blues

Page 10: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

nominal GDP:

North America, China, Japan

Page 11: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

inflation rate

GINI Country Report Japan

Page 84

Figure 5.1: Real GDP per capita in Japan

Source: Federal Reserve Economic Data (U.S. Department of Labor, Bureau of Labor Statistics;

http://research.stlouisfed.org/fred2) Note: Annual, not seasonally adjusted. Unit is 2010 U.S. dollars.

Figure 5.2: Consumer Price Index for all items (index 2005=100)

Source: Main Economic Indicators (Organization for Economic Co-operation and Development)

0

5.000

10.000

15.000

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30.000

35.000

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Page 12: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 84

Figure 5.1: Real GDP per capita in Japan

Source: Federal Reserve Economic Data (U.S. Department of Labor, Bureau of Labor Statistics;

http://research.stlouisfed.org/fred2) Note: Annual, not seasonally adjusted. Unit is 2010 U.S. dollars.

Figure 5.2: Consumer Price Index for all items (index 2005=100)

Source: Main Economic Indicators (Organization for Economic Co-operation and Development)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

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real GDP per capita

Page 13: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

government debt as % of GDPGINI Country Report Japan

Page 85

Figure 5.3: Government Debt as a % of GDP

Source: World Economic Outlook (International Monetary Fund)

Note. Gross debt consists of all liabilities that require payment or payments of interest and/or principal by the

debtor to the creditor at a date or dates in the future. This includes debt liabilities in the form of Special

Drawing Rights (SDRs), currency and deposits, debt securities, loans, insurance, pensions and standardized

guarantee schemes, and other accounts payable. Debt can be valued at current market, nominal, or face values.

http://research.stlouisfed.org/fred2/series/GGGDTPJPA188N.

5.2 Minimum Wage

The following sections summarize government policies related to inequality. Figure 5.4 shows that

the minimum wage has increased since 1997, stayed at the same level from 2001 to 2005, but

increased again from 2007. However, the relative level of the minimum wage to average wage in the

country—the Kaitz index—has not changed tremendously. Figure 5.5 shows the Kaitz index for males

and females, respectively. For males, the minimum wage level unchanged during 1980s, decreased

between 1990 and 1993, and then slightly increased after that. For females, it unchanged during

1980s, decreased largely between 1990 and 1993, stayed at the same level until 2004, and increased

after that. That is, through the entire period from 1980 till 2009, the relative level of minimum wage

is rather constant. The increase in the minimum wage is thought to have only small effects on

alleviating existing levels of income inequality (Kawaguchi and Mori, 2009).

0

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Page 14: Japan in the 21st Century

3. Socio-economic Change:

(not) sharing the pie

Page 15: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 26

Figure 2.14: Employment rate by age group and gender

Panel A. Male

Panel B. Female

Source: Labour Force Survey (Statistics Bureau, Ministry of Internal Affairs and Communications).

Note: Employment rate = (Employed person/Population of 15 years old or more) * 100.

0

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Age 25-34 35-44 45-54 55-64 over65

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(%)

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employment rate: males

Page 16: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

employment rate: females

GINI Country Report Japan

Page 26

Figure 2.14: Employment rate by age group and gender

Panel A. Male

Panel B. Female

Source: Labour Force Survey (Statistics Bureau, Ministry of Internal Affairs and Communications).

Note: Employment rate = (Employed person/Population of 15 years old or more) * 100.

0

10

20

30

40

50

60

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80

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100

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(%)

Age 25-34 35-44 45-54 55-64 over65

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Age 25-34 35-44 45-54 55-64 over 65

Page 17: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

unemployment rate: males

GINI Country Report Japan

Page 23

Figure 2.12: Unemployment rate

Source: Labor Force Survey (Ministry of Internal Affairs and Communications (2010)).

Figure 2.13: Unemployment rate by age group and gender

Panel A. Male

0,0

1,0

2,0

3,0

4,0

5,0

6,0

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(% )

Total Male Female

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(%)

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Page 18: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

unemployment rate: females GINI Country Report Japan

Page 24

Panel B. Female

Source: Labor Force Survey (Ministry of Internal Affairs and Communications)

Note: The listed unemployment rates are based on official data for every February from 1989 to 2009.

Table 2.2 summarizes the trend of the employment rate. The total employment rate decreased by

about 1% between 1983 and 1988, and increased by about 2.5% between 1989 and 1992. It then

started decreasing steadily after the economic bubble burst: decreased by about 5% between 1993

and 2004. It has remained at around 58% since 2007.

Figure 2.14 shows the trend of the employment rate for males (Panel A) and females (Panel B)

separately by age group. The male employment rate in the working-age population decreased in the

late 1990s. Especially for those aged 25-34, it was about 95% in the early 1990s, but declined to less

than 90% in the 2000s. For females, the employment rate increased for all age groups, but it is not at

a  high  level  yet:  Japan’s employment rate for those aged 15-64 was 60.1% in 2010 (Labour market

statistics, OECD Employment and Labour Market Statistics), which is lower than in North European

countries (70-80%), the United States (62.4%), the United Kingdom (65.3%), and Germany (66.1%),

but is at the same level as France (59.7%).

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(%)

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64

Page 19: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

salaries: malesGINI Country Report Japan

Page 21

Figure 2.9: Log wage differences for men between the 50th and 10th

Source: Basic Survey of Wage Structure (Ministry of Health, Labour, and Welfare).

Note: See the note to the previous figure.

Figure 2.10: Log wage differences for women between the 90th and 50th

Source: Basic Survey of Wage Structure (Ministry of Health, Labour, and Welfare).

Note: See the note to the previous figure.

0,1

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All ages Age 20-24 Age 25-29 Age 30-34 Age 35-39

Age 40-44 Age 45-49 Age 50-54 Age 55-59

0,1

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All ages Age 20-24 Age 25-29 Age 30-34 Age 35-39Age 40-44 Age 45-49 Age 50-54 Age 55-59

Page 20: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

salaries: females GINI Country Report Japan

Page 22

Figure 2.11: Log wage differences for women between the 50th and 10th percentiles

Source: Basic Survey of Wage Structure (Ministry of Health, Labour, and Welfare).

Note: See the note to the previous figure.

What happened in the labor market that lies behind this increase in wage inequality among low wage

groups? First, the unemployment rate skyrocketed from the mid-1990s after the economic bubble

burst. Figure 2.12 shows this trend clearly both for males and females. Decomposing to age groups,

Figure 2.13 shows that the situation was more serious for young males. In Japan, workers are, once

employed, protected by laws imposing severe requirements on employers laying off employees and

by traditional employment schemes such as the seniority system. Therefore, young workers have

more difficulty entering the labor market or moving to different jobs.

0,1

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All ages Age 20-24 Age 25-29 Age 30-34 Age 35-39

Age 40-44 Age 45-49 Age 50-54 Age 55-59

Page 21: Japan in the 21st Century

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

minimum wages

GINI Country Report Japan

Page 86

Figure 5.4: Changes in prefectural minimum wage

Source: Table of Prefectural Minimum Wage (Ministry of Health, Labour and Welfare, 2002-2011)

Note: We calculate weighted average minimum wage for the country as a whole using prefectural minimum

wage level and weighting the prefectural population.

580

600

620

640

660

680

700

720

740

7601997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Yen

per

ho

ur

Page 22: Japan in the 21st Century

GINI Country Report Japan

Page 28

Figure 2.15: Proportion of non-standard workers among all employees

Source: The Special Survey of the Labour Force Survey (1984–2001), and Labour Force Survey (2002–present)

(both by Ministry of Health, Labour, and Welfare).

Note: The figure shows the ratio of non-standard workers to employees, excluding executives of companies or

corporations. Non-standard workers include part-time workers, contract employees, and casualized workers.

When  discussing  Japan’s  labor  market  inequality,  close  attention  needs  to  be  paid  to  the  wage  gap  

between part-time employees and full-time employees. Figure 2.16 shows the income inequality

between the two. During the period from 1980 to 2002, the hourly wage rate received by part-time

employees declined continually compared to that of full-time employees. In the 2000s, part-time

hourly wages appeared to increase slightly, but male (female) part-time employees are paid only half

(60%) as much as full-time employees. This slight increase has not mitigated large increases in the

share of non-standard workers either of men or women.

0

10

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(%)

Total Male Female

number of ‘non-standard’ workers

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

Page 23: Japan in the 21st Century

percent of workforce unionized

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 72

4.3. Unionized Workforce

The labor unionization rate has declined significantly, especially since the late 1970s (Figure 4.4).

Behind this downward trend is a change in Japan’s  employment conditions. As seen in Chapter 2,

regular full-time workers have decreased and non-standard part-time workers have increased since

the late 1990s.

Figure 4.3: Percentage of workforce unionized

Source: The number of union employees is from Basic Survey on Labour Unions (MHLW), and the number of

employees is from Labour Force Survey (Statistic Bureau).

Note: The figure shows the ratio of the number of employees in labor unions relative to the total number of

employees in Japan.

A decline in the rate of union participation is also observed in the following figure. Figure 4.4 shows

the kinds of voluntary organizations and activities in which Japanese people participate, and changes

in the 1990s. The big changes between 1990 and 2000 are a decrease in labor unions and an increase

in religious groups. An increase in religious groups may reflect an increase in social and economic

instability or uncertainty, which might be related to an increase in Inequality.

0,0

10,0

20,0

30,0

40,0

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60,0

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01

20

03

20

05

20

07

20

09

(%)

Page 24: Japan in the 21st Century

poverty rates by age

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 36

Figure 2.23: Poverty rates calculated by disposable income

Source:  A

u

thors’  ca lculations  using  mi cro  data  taken  fr om  t he  NSFIE.

Note: The figure shows the ratio of the number of people whose income is less than or equal to half of the

national median income. For calculation, household income and consumption is divided by square root of the

number of household members.

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

0,160

-4

5-9

10

-14

15

-19

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

-69

70

-74

75

-

Po

vert

y R

ate

1984 1994 2004

Page 25: Japan in the 21st Century

poverty rates by age

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 36

Figure 2.23: Poverty rates calculated by disposable income

Source:  A

u

thors’  ca lculations  using  mi cro  data  taken  fr om  t he  NSFIE.

Note: The figure shows the ratio of the number of people whose income is less than or equal to half of the

national median income. For calculation, household income and consumption is divided by square root of the

number of household members.

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

0,160

-4

5-9

10

-14

15

-19

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

-69

70

-74

75

-

Po

vert

y R

ate

1984 1994 2004

Page 26: Japan in the 21st Century

overall:

highest incomes – from Tokyo to

Osaka

lowest incomes – in the outer

regions e.g. Tohoku, Shikoku,

Kyushu

per capita income: by prefecture

Page 27: Japan in the 21st Century

overall:

lowest poverty – central Japan

(Aichi, Gifu, Nagano, Toyama,

Shizuoka)

highest poverty – urban areas

(particularly Osaka, Tokyo)

and outer regions (e.g. Hokkaido,

northern Tohoku, Shikoku, Kyushu)

poverty rates: by prefecture

Page 28: Japan in the 21st Century

definition:

a measure of income inequality

compares area A with area B

perfect equality = 0

perfect inequality = 1

i.e. the higher the Gini coefficient,

the greater the inequality

… so a low Gini coefficient is good

the Gini coefficient

Page 29: Japan in the 21st Century

the Gini coefficient: world map

Page 30: Japan in the 21st Century

Gini coefficient by age

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 33

Figure 2.20: Gini coefficient before-tax income by age group

Source:  A

u

thors’  calculations  using  mi cro  data  taken  fr om  the  NSFIE.

Note: For the calculation, household income and consumption are divided by the square root of the number of

household members.

Figure 2.21: Gini coefficient of consumption expenditure by age group

Source:  A

u

thors’  calculations  using  mi cro  data  taken from the NSFIE.

Note: See the note to the previous figure.

0,20

0,22

0,24

0,26

0,28

0,30

0,32

0,34

Gin

i Co

eff

icie

nt

1984 1994 2004

0,20

0,22

0,24

0,26

0,28

0,30

0,32

0,34

Gin

i Co

eff

icie

nt

1984 1994 2004

Page 31: Japan in the 21st Century

Gini coefficient over time

housing and land: decreasing

financial assets: increasing

durable goods: increasing

income: increasing

source: Sugimoto, 2010, p. 52

Page 32: Japan in the 21st Century

growing perceptions of poverty

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 65

Figure 3.20: Living conditions

Source: Comprehensive Survey on Living Conditions (MHLW (2010)).

Figure 3.21: Living conditions by income quintiles

Source: Comprehensive Survey on Living Conditions (MHLW (2010)).

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1992

1998

2004

Very hard Hard Not hard but not easy Easy Very easy

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1992

1998

2004

1992

1998

2004

1992

1998

2004

1992

1998

2004

III

III

IV

Very hard Hard Not hard but not easy Easy Very easy

Page 33: Japan in the 21st Century

growing perceptions of inequality

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 79

redistribution policies.

Figure 4.10: Percentage of people who agree that “inequalities are too large in the country”

Source: International Social Survey Programme (1999, 2009)

http://zacat.gesis.org/webview/index.jsp?object=http://zacat.gesis.org/obj/fStudy/ZA3430

http://zacat.gesis.org/webview/index.jsp?object=http://zacat.gesis.org/obj/fStudy/ZA5400

Note: The figure summarizes answers to the question “How much do you agree or disagree ‘Differences  in

income in Japan are too large’?”

Figure 4.11: Percentage of people who agree that the “poor are lazy”

Source: World Values Survey (2000, 2005) Note. The figure summarizes answers to the question “Do you agree

or disagree with the following statements?: People who don’t  work become lazy.”

Figure 4.12: Percentage of people who agree that the “government should redistribute

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1999

2009

Strongly agree Agree Neither agree nor disagree

Disagree Strongly disagree Cant choose

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2000

2005

Strongly agree Agree Neither agree Disagree Strongly disagree

Page 34: Japan in the 21st Century

“the government should redistribute

income”

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 80

wealth/income”

Source: JGSS (2000, 2001, 2002, 2003, 2005, 2006, 2008, 2010)

Note: The figure summarizes answers to the question:  “It is the responsibility of the government to reduce

differences in income between families with high incomes and those with low incomes.”

4.7. Chapter Conclusion: Appraisal of the Interdependence and the National Story

of Inequality Drivers and their Cultural and Political Impacts

In this chapter, we showed how individuals connect to society in Japan. First, we looked at voting

behavior. The voting rate is about 67% in Japan (this is also about the average among OECD countries)

and has gradually decreased over three decades. There is no difference in voting rate by educational

level, while the voting rate is significantly higher among older people than among younger people.

Second, we found that the labor unionization rate has steadily decreased over time. This reflects a

weakening of the traditional seniority system and increase in non-standard employees in Japanese

companies. Third, we found that the level of trust in others is about average in OECD countries and

increased between 1998 and 2007. Fourth, regarding political positions, about 30% of Japanese

position themselves as conservative and about 20% as progressive. The share of people with

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2000

2001

2002

2003

2005

2006

2008

2010

Agree Somewhat agree Neither agree nor disagree Somewhat disagree Disagree

Page 35: Japan in the 21st Century

definition:

poverty rates before taxes and

transfers …

and after taxes and transfers

OECD overall:

before tax – high

after tax – much lower

Japan overall:

before tax – low

after tax - higher

over time:

increasing inequality,

before tax and after tax

reducing the Gini coefficient

Page 36: Japan in the 21st Century

number of households on welfare

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 17

Figure 2.6: Changes in the number of households living on welfare

Source: Care Reports of Welfare Administration (Ministry of Health, Labour and Welfare (2010)).

Note: The bars show the number of people living on welfare support, which is measured on the right axis. The

line shows their percentage (number relative to 1,000 persons), which is measured on the left axis.

2.1.5. Educational Inequality

Table 2.1 shows the average years of education for various countries. Japan is ranked in the higher

group. Figure 2.7 shows that the Gini coefficient for years of education becomes smaller as age

decreases for groups aged between 60 and 85. The Gini coefficient becomes gradually higher as age

decreases for groups aged between 35 and 39, and it becomes clearly higher as age decreases for

groups aged between 20 and 34. Because Japanese people rarely go back to school once they started

working, this trend means that the inequality in years of education fell in the 1960s, started

increasing in the early 1970s, and increased gradually for three decades, expanding further from the

early 2000s.

Table 1.1: Mean years of education

Country Mean Education Years

500 000

1 000 000

1 500 000

2 000 000

2 500 000

0

0,005

0,01

0,015

0,02

0,025

1955

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

(people) (% )

Page 37: Japan in the 21st Century

types of families on welfare

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 39

Figure 2.26: Welfare recipients by family type (monthly average)

Source: Care Reports of Welfare Administration (MHLW (2010)).

Note: The number of individuals is measured on the vertical axis.

Figure 2.27: Welfare recipients by age group

Source: National Survey of Public Assistance Recipients (MHLW (2010)).

Note: The number of individuals is measured on the vertical axis.

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Total Households of the agedHouseholds of the disabled/invalid Households of mother and child(ren)Other Households

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0-19 20-39 40-59 60-

Page 38: Japan in the 21st Century

poverty rates by age

Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.

GINI Country Report Japan

Page 36

Figure 2.23: Poverty rates calculated by disposable income

Source:  A

u

thors’  ca lculations  using  mi cro  data  taken  fr om  t he  NSFIE.

Note: The figure shows the ratio of the number of people whose income is less than or equal to half of the

national median income. For calculation, household income and consumption is divided by square root of the

number of household members.

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

0,160

-4

5-9

10

-14

15

-19

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

-69

70

-74

75

-

Po

vert

y R

ate

1984 1994 2004

Page 39: Japan in the 21st Century

definition:

overview of reading, mathematical

and scientific literacy

Japan: very low – 0.4%

#1 lowest in the OECD

United States: low – 2.2%

#5 lowest in the OECD

children without employed parent

Page 40: Japan in the 21st Century

definition:

% of children living in households

with income lower than 50% of the

national median

Japan: high – 14.9%

#9 in OECD

United States: very high – 23.1%

highest in OECD

relative poverty rate - children

Page 41: Japan in the 21st Century

definition:

relative child poverty rates before

taxes and transfers and after taxes

and transfers

Canada: minus 11%

Australia: minus 18%

Belgium: minus 9%

The Netherlands: minus 6%

Denmark: minus 6%

United States: minus 2%

Japan: minus 1%

Spain: minus 2%

Italy: minus 0.5%

Greece: plus 3%

government and child poverty rates

Page 42: Japan in the 21st Century

Review

1. demographic change:

demography is destiny

2. economic change:

macroeconomic blues

3. socioeconomic change:

(not) sharing the pie

Page 43: Japan in the 21st Century

Review

1. demographic change:

demography is destiny

population is falling

very low birth rate

ageing population

inverted population pyramid

Page 44: Japan in the 21st Century

Review

2. economic change:

macroeconomic blues

little real growth in the economy

long-term deflation

little growth in real wages

growing government debt – but not effectively

used to ameliorate poverty

Page 45: Japan in the 21st Century

Review

3. socioeconomic change:

(not) sharing the pie

steady employment rates for males and females

unemployment rates sometimes higher for youth

higher salaries for men than women

constant salaries for older workers

falling salaries for younger workers

increasing number of ‘non-standard’ workers

Page 46: Japan in the 21st Century

Review

3. socioeconomic change:

(not) sharing the pie

increasing poverty in 20s to mid-40s

falling poverty for older, retired workers

higher salaries and lower poverty in central Japan

growing perceptions of inequality

more people on welfare, but mostly older people

government policies do not reduce young poverty

high relative poverty for children