Income Inequality Trends and their Challenges to Redistribution Policies in Japan

Author(s):  
Tetsuo Fukawa ◽  
Takashi Oshio

This article is an overview of income inequality trends during the 1980s and 1990s and a discussion of their challenges to redistribution policies in Japan. The key results are summarized as follows. First, a widening disparity in market income for the working-age population has been driving rising income inequality in society as a whole, while population aging has added to the uptrend. Second, wide income inequality for the aged population reflects high rates of co-residency and labor force participation among the elderly. This unique feature to the Japanese elderly explains the fact that population aging has led to a rise in overall inequality measures. Third, the current scheme of redistribution policies is less effective for reducing income inequality compared to other countries of the Organization for Economic Co-operation and Development countries (OECD), leaving distribution of disposable income relatively uneven in Japan.

Genus ◽  
2020 ◽  
Vol 76 (1) ◽  
Author(s):  
Ronald Lee

Abstract From our evolutionary past, humans inherited a long period of child dependency, extensive intergenerational transfers to children, cooperative breeding, and social sharing of food. Older people continued to transfer a surplus to the young. After the agricultural revolution, population densities grew making land and residences valuable assets controlled by older people, leading to their reduced labor supply which made them net consumers. In some East Asian societies today, elders are supported by adult children but in most societies the elderly continue to make private net transfers to their children out of asset income or public pensions. Growing public intergenerational transfers have crowded out private transfers. In some high-income countries, the direction of intergenerational flows has reversed from downward to upwards, from young to old. Nonetheless, net private transfers remain strongly downward, from older to younger, everywhere in the world. For many but not all countries, projected population aging will bring fiscal instability unless there are major program reforms. However, in many countries population aging will reduce the net cost to adults of private transfers to children, partially offsetting the increased net costs to working age adults for public transfers to the elderly.


2021 ◽  
pp. 106591292110160
Author(s):  
Yesola Kweon ◽  
ByeongHwa Choi

Deservingness theory contends that spending on the elderly is widely supported across age groups because, unlike other groups such as immigrants or the unemployed, senior citizens are perceived as morally worthy of social aid. However, through a survey experiment in Japan, a prototypical aging society, this study shows that in a state with a large population of senior citizens, there is a significant age gap in policy preferences with the working-age population demonstrating stronger opposition to government support for the elderly. To induce empathetic policy attitudes toward the elderly, therefore, effective issue framing is necessary. However, emphasizing economic need is not enough; it is only when both the elderly’s economic need and effort to work are emphasized that we see a positive attitudinal change among the working-age population. In addition, we find that the economically secure are more sensitive to senior citizens’ economic need and effort to work in determining their policy support. By contrast, the economically insecure exhibit unqualified support for the elderly. These findings demonstrate that deservingness for the elderly is not innate, but is driven by conditional altruism. Furthermore, our work emphasizes the importance of issue framing in generating intergenerational solidarity in a rapidly aging society.


2021 ◽  
Author(s):  
Malcolm Clarke ◽  
Precious Onyeachu

BACKGROUND Population aging is a global phenomenon, with the proportion of the population over the age of 60 increasingly rapidly. However ownership and use of technology by people in this age group remains low, which impacts on introduction of and the assumptions made for, technology-based activities such as telehealth and telemedicine. It is essential to gain accurate information on the level of technology ownership in target groups. However, many studies on levels of technology ownership and use report using electronic methods for their survey, which introduces bias and may result in a higher value. OBJECTIVE To determine the level of ownership of technology in the elderly population using an unbiased data collection methodology. METHODS Our study collects data from patients invited to attend a clinic for their annual flu vaccination, and thereby captures a cross section of the population that is unbiased by the collection method. 309 patients completed a questionnaire, and were considered in three (3) age groups; young adults (25 to 45) (n=72), working-age (46 to 59) (n=80) and older adults (60 and above) (n=157). RESULTS In the older adult group (60+), 50 people (32%) out of 157 respondents had a mobile or smart phone and 107 (68%) did not; 38 people (24%) out of 157 respondents owned and used a computer and 119 (76%) had never used or owned a computer or tablet CONCLUSIONS Our results show a significantly lower ownership of technology in the elderly than found in other similar studies, which we attribute to the method of collection of the data, and consider to be a true reflection of the ownership in the general population.


2020 ◽  
Vol 12 (22) ◽  
pp. 9459
Author(s):  
Manuela A. de Paz-Báñez ◽  
María José Asensio-Coto ◽  
Celia Sánchez-López ◽  
María-Teresa Aceytuno

The objective of this article is to determine, as conclusively as possible, if the implementation of a Universal Basic Income (UBI) would lead to a significant reduction in the working age population labour supply. If this were true, implementation of a UBI may not be sustainable. To do this, we will compile empirical evidence from studies over the last few decades on the effects of implementation of a UBI on employment. We apply the PRISMA methodology to better judge their validity, which ensures maximum reliability of the results by avoiding biases and making the work reproducible. Given that the methodologies used in these studies are diverse, they are reviewed to contextualize the results taking into account the possible limitations detected in these methodologies. While many authors have been writing about this issue citing experiences or experiments, the added value of this article is that it performs a systematic review following a widely tested scientific methodology. Over 1200 documents that discuss the UBI/employment relationship have been reviewed. We found a total of 50 empirical cases, of which 18 were selected, and 38 studies with contrasted empirical evidence on this relationship. The results speak for themselves: Despite a detailed search, we have not found any evidence of a significant reduction in labour supply. Instead, we found evidence that labour supply increases globally among adults, men and women, young and old, and the existence of some insignificant and functional reductions to the system such as a decrease in workers from the following categories: Children, the elderly, the sick, those with disabilities, women with young children to look after, or young people who continued studying. These reductions do not reduce the overall supply since it is largely offset by increased supply from other members of the community.


Author(s):  
Gürçem Özaytürk ◽  
Ali Eren Alper ◽  
Fındık Özlem Alper

This study analyzes the relationship between the elderly dependency ratio and income inequality over the period 1972-2019 in countries such as the USA, Japan, the UK, France, Germany, Canada, and Italy, which rank top in the population aging, using the Fourier-Shin cointegration test. According to the results, the rise in the elderly dependency ratio of all countries included in the analysis, except for France, has a positive impact on income inequality. The result implying that the rise in the elderly dependency ratio increases the income inequality and renders some policy recommendations possible. Accordingly, the provision of adequate childcare programs and family aids can result in greater labor force participation in the short- and long-run. In addition, a pension system can be developed to lower the elderly dependency ratio, more money can be saved for the retirement period, and working domains can be developed for the post-retirement period.


Author(s):  
Ragui Assaad ◽  
Caroline Krafft ◽  
Caitlyn Keo

This chapter investigates the changing character of labor supply in Jordan from 2010 to 2016. We examine recent demographic developments as well as the rapid increases in educational attainment among Jordanians. A particular focus of the chapter is on the demographic changes, such as the large increase in the working age population, generated by the recent refugee influx. Labor force participation, as well as its components of unemployment and employment, are examined using a variety of definitions. We examine differential patterns of participation by age, sex, education, and place of residence. Data from the Jordan Labor Market Panel Surveys of 2010 and 2016 are supplemented with annual data from the Jordanian Employment and Unemployment Survey (EUS) for the intervening years.


2003 ◽  
Vol 18 (6) ◽  
pp. 306-313 ◽  
Author(s):  
Johannes Wancata ◽  
M. Musalek ◽  
R. Alexandrowicz ◽  
M. Krautgartner

AbstractSeveral authors have pointed out that in the next few decades dementia will affect a considerably increasing number of the elderly. To our knowledge there exist no calculations of the number of demented persons for the whole European region. We made calculations on the number of dementia cases for the period 2000–2050 based on the population projections of the United Nations. For this purpose, we used the results of several meta-analyses of epidemiological studies. The number of prevalent dementia cases in the year 2000 was 7.1 million. Within the next 50 years, this number will rise to about 16.2 million dementia sufferers. The number of new dementia cases per year will increase from about 1.9 million in the year 2000 to about 4.1 million in the year 2050. Contrarily, the working-age population will considerably decrease during the next 50 years. In the year 2000, 7.1 million dementia cases faced 493 million persons in working-age. This equals a ratio of 69.4 persons in working-age per one demented person. Until the year 2050, this ratio will decrease to only 21.1. Thus, the financial and emotional burden placed by dementia on the working-age population will markedly rise.


2021 ◽  
Vol 5 (1) ◽  
pp. 1253
Author(s):  
Ajay Chhibber

India entered its so-called demographic dividend around 2005—expected to last until 2055. India has already utilized almost a third of the period of its demographic dividend—it saw a period of explosive growth from 2003–2012—but has not been able to sustain that growth. And since 2012, growth has generated less and less employment, as it has turned inward, and so it is not helping the working-age population get usefully employed. The labor force participation rate for women has been low and is now falling. What can be done to use India’s underlying factors of production better to generate greater, more inclusive, and sustained prosperity for its citizens? These second-generation reforms are not easy, as they need cooperative federalism and much broader consensus, but without them India’s demographic dividend may become a disaster.


2013 ◽  
Vol 103 (3) ◽  
pp. 173-177 ◽  
Author(s):  
Philip Armour ◽  
Richard V Burkhauser ◽  
Jeff Larrimore

Recent research on levels and trends in the United States in income inequality vary substantially in how they measure income. We show the sensitivity of alternative income measures in capturing income trends using a unified data set. Focusing solely on market income or including realized taxable capital gains based on IRS tax return data in more comprehensive household income measures will dramatically increase inequality growth compared to capital gains measures more in keeping with Haig-Simons principles. Using a measure of yearly accrued capital gains dramatically reduces observed growth in income inequality across the distribution, but also equalizes income growth since 1989.


2020 ◽  
Vol 6 (5) ◽  
pp. 45-69
Author(s):  
Artur Petrosian ◽  
Egor Shevchuk ◽  
Pavel Kirillov ◽  
Nikita Mozgunov

The paper investigates the geographical features of demographic ageing using the age of retirement as the main definition for the old age boundary. The study is based on demographic statistics of Rosstat and the UN Population Division. The possible interdependence between population ageing and the implementation of social policies in the field of pension regulation is studied. The hypothesis about the relationship between low levels and a high pace of population ageing for countries of the world and regions of the Russian Federation was tested. A cartographic and statistical analysis of spatial data at the level of regions and municipalities made it possible to identify and describe the main geographical factors of population ageing differentiation. The ‘ethnic’ subjects of the Russian Federation, as well as the Northern regions of new development (autonomous okrugs), where a minimum proportion of the elderly of retirement age is observed, are growing older the most rapidly. At the same time, the echo of social сrises that took place during the 20th century still plays a significant part in the pace of ageing. However, over the course of this century its influence will increasingly weaken. At the local level, ethnic and rural-urban differentiation is becoming a less significant factor of population ageing in comparison with migration: the working-age population continues to concentrate in the largest urbanised areas. The main territories of the “young” population concentration are the administrative centres of Russia’s regions and areas with a high proportion of non-Russian ethnic groups with a high total fertility rate (TFR), as well as some other ‘azonic’ municipalities.


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