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Japan in the 21st Century
Robert Croker
Japanese Society II: Contemporary Japan
Center for Japanese Studies
Nanzan University
Contents
1. demographic change:
demography is destiny
2. economic change:
macroeconomic blues
3. socioeconomic change:
(not) sharing the pie
1. Demographic Change:
demography is destiny
birth and death rates
Japan’s population
birth rates
death rates
life expectancy at birth
GINI Country Report Japan
Figure 3.15: Life expectancy at birth by gender
Sources:  Complete  Life  Table  and  Abridged  Life  Table  (Statistics  and  Information  Department,  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.
60
65
70
75
80
85
90
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
(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.
ageing Japan
population pyramid
aged dependency ratio
population density map
2. Economic Change:
macroeconomic blues
Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.
nominal GDP:
North America, China, Japan
Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
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.
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2010U.S.dollars
real GDP per capita
GDP per capita (PPP)
Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.
government debt as % of GDPGINI Country Report Japan
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
0
50
100
150
200
250
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
3. Socio-economic Change:
(not) sharing the pie
Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.
unemployment rate: males
Source: Labor Force Survey (Ministry of Internal Affairs and Communications (2010)).
Figure 2.13: Unemployment rate by age group and gender
Panel A. Male
Total Male Female
0
2
4
6
8
10
12
14
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
(%)
Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan.
unemployment rate: femalesGINI Country Report Japan
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.
0
2
4
6
8
10
12
14
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
(%)
Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
percent of workforce unionized
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
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.
0,0
10,0
20,0
30,0
40,0
50,0
60,0
1947
1949
1951
1953
1955
1957
1959
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
(%)
GINI Country Report Japan
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.
0
10
20
30
40
50
60
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(%)
Total Male Female
number of ‘non-standard’ workers
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
poverty rates by age
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
Figure 2.23: Poverty rates calculated by disposable income
Source:  Authors’  calculations  using  micro  data  taken  from  the  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
0,16
0-4
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-
PovertyRate
1984 1994 2004
poverty rates by age
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
Figure 2.23: Poverty rates calculated by disposable income
Source:  Authors’  calculations  using  micro  data  taken  from  the  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
0,16
0-4
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-
PovertyRate
1984 1994 2004
overall:
highest incomes – from Tokyo to
Osaka
lowest incomes – in the outer
regions e.g.Tohoku, Shikoku,
Kyushu
per capita income: by prefecture
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
growing perceptions of poverty
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
Figure 3.20: Living conditions
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
growing perceptions of inequality
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
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”
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
“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
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.”
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
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 poverty rate
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
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.
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)(% )
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
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.
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total Households of the aged
Households of the disabled/invalid Households of mother and child(ren)
Other Households
poverty rates by age
Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
GINI Country Report Japan
Figure 2.23: Poverty rates calculated by disposable income
Source:  Authors’  calculations  using  micro  data  taken  from  the  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
0,16
0-4
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-
PovertyRate
1984 1994 2004
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
poverty –
househo
income i
national
countrie
Critics h
poverty i
out that
relative p
of living
the past
children
to ackno
nations t
the cont
the lives
those aro
Nonethe
comparis
drawn at
income p
in that it
differenc
shows, fo
poverty r
higher th
show tha
a couple
approxim
$24,000
that a sm
are grow
0 5 10 15 20 25
Date: 2000,1999 (Australia, Austria and Greece), 2001 (Germany, New Zealand and Switzerland).
United States
New Zealand
United Kingdom
Italy
Ireland
Figure 1.2 Percentage of working-age households
with children without an employed parent
Date: 2000, 1999 (Japan and Canada), 1998 (Switzerland), 2001 (Spain, the Netherlands, and Germany), 2002 (Austria, Norway and Poland).
Non-OECD, 2004 (Israel).
0 2 4 6 8 10 12
Israel
Hungary
Australia
Poland
Germany
United Kingdom
Czech Republic
New Zealand
Ireland
France
Netherlands
Norway
Spain
Denmark
Belgium
Italy
Finland
Canada
Sweden
Greece
United States
Austria
Switzerland
Portugal
Japan
OECD Nations
Non-OECD Nations
children without employed parent
definition:
% of children living in households
with income lower than 50% of the
national median
Greece: 12.7%
Japan: high – 14.9%
#9 in OECD
United States: very high – 23.1%
highest in OECD USA
Spain
Italy
Japan
Canada
Luxembourg
United Kingdom
Australia
Belgium
France
Germany
Ireland
Switzerland
Austria
Sweden
Denmark
Norway
Netherlands
Finland
Iceland
23.1
17.1
15.9
14.9
13.3
12.3
12.1
10.9
10.2
8.8
8.5
8.4
8.1
7.3
7.3
6.5
6.1
6.1
5.3
4.7
0 5 10 15 20 25
Child poverty rate (% of children living in households with equivalent income
lower than 50% of the national median)
Cross-national comparisons in the
European Union must now span a
group of countries whose annual per
capita incomes range from less than
relative poverty line in the Netherlands
has double the income of a child
living at the median income level in a
country like Hungary (Figure 3).
define a co
there is wid
principle –
the poor ar
access to th
activities an
considered
the society
Boxes 6, 8
yardstick to
countries, i
the compa
wealthier c
incomes be
a similar le
Figure 4, fo
comparison
rates to the
annual per
than $31,0
Depriva
These conc
to increasin
income me
a more dire
Within ind
advanced c
child depri
available.T
example, in
Ireland, the
the United
the Child D
Figure 1a i
this need.A
Fig. 4 A league table of relative child poverty, selected OECD countries
relative poverty rate - children
definition:
relative child poverty rates before
taxes and transfers and after taxes
and transfers
Australia: minus 18%
Canada: minus 11%
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%
Canada
Malta
Iceland
Luxembourg
Germany
Slovenia
France
Norway
Czech Republic
Austria
New Zealand
Australia
Finland
United Kingdom
Hungary
Ireland
large part the result of global economic
trends. But that does not mean that it is
inevitable. It is within the power of
every government in the OECD to set
realistic targets for reducing relative
child poverty and to put in place the
policies and the monitoring systems
required to meet those targets.xii
Figure
1b shows that a realistic target for the
countries with relative child poverty
rates below 10% would be to renew
the struggle to reduce the rate to 5% or
lower. Similarly, the 12 countries with
rates between 10% and 15% should aim
at lowering relative child poverty below
10%. The 8 countries currently with
rates of 15% to 25% have the capacity
to bring the rate below the 15% level
as an essential first step.
Announcing such targets is of course not
enough. It is now more than 20 years,
for example, since the Government of
Canada announced that it would “seek to
eliminate child poverty by the year 2000.”
Yet Canada’s child poverty rate is higher
Fig. 8 Relative child poverty rates before taxes and transfers (market income) and after
taxes and transfers (disposable income)
before taxes and transfers after taxes and transfers
1 8 I N N O C E N T I R E P O R T C A R D 1 0
Greece
Italy
Japan
USA
Spain
Switzerland
Latvia
Romania
Poland
Bulgaria
Portugal
Estonia
Lithuania
Slovakia
Cyprus
Denmark
Netherlands
Belgium
Sweden
Canada
Malta
Iceland
Child poverty rate
(% of children living in households with income lower than 50% of the national median income)
0 10 20 30 40 50
for example, since the Government of
Canada announced that it would “seek to
eliminate child poverty by the year 2000.”
Yet Canada’s child poverty rate is higher
today than when that target was first
announced.xiii
In part this is because
the commitment was not backed by a
compelling political and public consensus
or by any firm agreement on how
child poverty should be defined and
monitored.Targets can only be a
first step.
In the past, the European Commission
has done much to help EU countries
to develop common indicators for
the measurement of child poverty and
to develop plans for its reduction (see
Box 7:The European Union: 2020
vision). But since the economic crisis
began, child poverty appears to have
slipped down the Commission’s agenda.
Children barely feature, for example, in
the Europe 2020 strategy. In particular,
the Commission appears reluctant to
publish cross-national data on falling
government expenditures for children
and families. Later this year (2012), the
Commission is due to make proposals
to member states on child well-being.
Those proposals should include targets
for specific reductions in child poverty
by the end of this decade.
Notes: For each country and for both income definitions, poverty calculations are based on a poverty line set at 50% of
Switzerland
Latvia
Romania
Poland
Bulgaria
Portugal
Estonia
Lithuania
Slovakia
Cyprus
Denmark
Netherlands
Belgium
Sweden
Canada
Malta
Iceland
Luxembourg
Germany
Slovenia
France
Norway
Czech Republic
Austria
New Zealandthe struggle to reduce the rate to 5% or
lower. Similarly, the 12 countries with
rates between 10% and 15% should aim
at lowering relative child poverty below
10%. The 8 countries currently with
rates of 15% to 25% have the capacity
to bring the rate below the 15% level
as an essential first step.
Announcing such targets is of course not
enough. It is now more than 20 years,
for example, since the Government of
Canada announced that it would “seek to
eliminate child poverty by the year 2000.”
Yet Canada’s child poverty rate is higher
today than when that target was first
announced.xiii
In part this is because
the commitment was not backed by a
compelling political and public consensus
or by any firm agreement on how
child poverty should be defined and
monitored.Targets can only be a
first step.
In the past, the European Commission
has done much to help EU countries
to develop common indicators for
the measurement of child poverty and
to develop plans for its reduction (see
Box 7:The European Union: 2020
vision). But since the economic crisis
began, child poverty appears to have
slipped down the Commission’s agenda.
Children barely feature, for example, in
government and child poverty rates
The Face of Poverty
Relative poverty rate:
single-parent households = 54.6%
(mostly headed by mothers)
average family income = 2.43 million yen
(= US$ 20 000)
families with both parents = 6.73 million yen
( = US$ 57 000)
Food relief groups plan nationwide network to address growing poverty.The Japan Times (November 12, 2015).
Education
High school attendance:
general population = 98.4%
children living in poverty = 90%
University attendance:
general population = 51%
children living in poverty = 20%
Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
Crime
Number of crimes in Japan falls to postwar low in 2015. The Japan Times (January 14, 2016).
Which are more dangerous?
14-19 year olds over 65 year olds
Which are more dangerous?
39, 501 crimes (2015) 47, 643 crimes (2015)
Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
Review
1. demographic change:
demography is destiny
2. economic change:
macroeconomic blues
3. socioeconomic change:
(not) sharing the pie
Review
1. demographic change:
demography is destiny
population is falling
very low birth rate
ageing population
inverted population pyramid
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
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
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
The Face of Poverty
Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
growing perceptions of poverty
Editorial: Poverty and the right to live. Mainichi Japan (May 5, 2015).
Education
Hagiwara,Y., & Reynolds, S. One in six Japanese children live in poverty, threatening their education, Future. The Japan Times
(September 10, 2015).
Education
Hagiwara,Y., & Reynolds, S. One in six Japanese children live in poverty, threatening their education, Future. The Japan Times
(September 10, 2015).
Education
Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).

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Class 4 PowerPoint

  • 1. Japan in the 21st Century Robert Croker Japanese Society II: Contemporary Japan Center for Japanese Studies Nanzan University
  • 2. Contents 1. demographic change: demography is destiny 2. economic change: macroeconomic blues 3. socioeconomic change: (not) sharing the pie
  • 8. life expectancy at birth GINI Country Report Japan Figure 3.15: Life expectancy at birth by gender Sources:  Complete  Life  Table  and  Abridged  Life  Table  (Statistics  and  Information  Department,  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. 60 65 70 75 80 85 90 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (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.
  • 14. Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan. nominal GDP: North America, China, Japan
  • 15. Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan 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. 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010U.S.dollars real GDP per capita
  • 16. GDP per capita (PPP)
  • 17. Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan. government debt as % of GDPGINI Country Report Japan 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 0 50 100 150 200 250 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 19. Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan. unemployment rate: males Source: Labor Force Survey (Ministry of Internal Affairs and Communications (2010)). Figure 2.13: Unemployment rate by age group and gender Panel A. Male Total Male Female 0 2 4 6 8 10 12 14 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (%) Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
  • 20. Ohtake, F., Kohara, M., Okuyama, N, Yamada K. (2013). Growing inequalities and their impacts on Japan. unemployment rate: femalesGINI Country Report Japan 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. 0 2 4 6 8 10 12 14 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (%) Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
  • 21. percent of workforce unionized Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. 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. 0,0 10,0 20,0 30,0 40,0 50,0 60,0 1947 1949 1951 1953 1955 1957 1959 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 (%)
  • 22. GINI Country Report Japan 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. 0 10 20 30 40 50 60 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (%) Total Male Female number of ‘non-standard’ workers Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan.
  • 23. poverty rates by age Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan Figure 2.23: Poverty rates calculated by disposable income Source:  Authors’  calculations  using  micro  data  taken  from  the  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 0,16 0-4 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- PovertyRate 1984 1994 2004
  • 24. poverty rates by age Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan Figure 2.23: Poverty rates calculated by disposable income Source:  Authors’  calculations  using  micro  data  taken  from  the  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 0,16 0-4 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- PovertyRate 1984 1994 2004
  • 25. overall: highest incomes – from Tokyo to Osaka lowest incomes – in the outer regions e.g.Tohoku, Shikoku, Kyushu per capita income: by prefecture
  • 26. 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
  • 27. growing perceptions of poverty Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan Figure 3.20: Living conditions 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
  • 28. growing perceptions of inequality Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan 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” 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
  • 29. “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 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.” 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
  • 30. 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 poverty rate
  • 31. 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 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. 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)(% )
  • 32. 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 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. 0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000 1 600 000 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Households of the aged Households of the disabled/invalid Households of mother and child(ren) Other Households
  • 33. poverty rates by age Ohtake, F., Kohara, M., Okuyama, N,Yamada K. (2013). Growing inequalities and their impacts on Japan. GINI Country Report Japan Figure 2.23: Poverty rates calculated by disposable income Source:  Authors’  calculations  using  micro  data  taken  from  the  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 0,16 0-4 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- PovertyRate 1984 1994 2004
  • 34. 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 poverty – househo income i national countrie Critics h poverty i out that relative p of living the past children to ackno nations t the cont the lives those aro Nonethe comparis drawn at income p in that it differenc shows, fo poverty r higher th show tha a couple approxim $24,000 that a sm are grow 0 5 10 15 20 25 Date: 2000,1999 (Australia, Austria and Greece), 2001 (Germany, New Zealand and Switzerland). United States New Zealand United Kingdom Italy Ireland Figure 1.2 Percentage of working-age households with children without an employed parent Date: 2000, 1999 (Japan and Canada), 1998 (Switzerland), 2001 (Spain, the Netherlands, and Germany), 2002 (Austria, Norway and Poland). Non-OECD, 2004 (Israel). 0 2 4 6 8 10 12 Israel Hungary Australia Poland Germany United Kingdom Czech Republic New Zealand Ireland France Netherlands Norway Spain Denmark Belgium Italy Finland Canada Sweden Greece United States Austria Switzerland Portugal Japan OECD Nations Non-OECD Nations children without employed parent
  • 35. definition: % of children living in households with income lower than 50% of the national median Greece: 12.7% Japan: high – 14.9% #9 in OECD United States: very high – 23.1% highest in OECD USA Spain Italy Japan Canada Luxembourg United Kingdom Australia Belgium France Germany Ireland Switzerland Austria Sweden Denmark Norway Netherlands Finland Iceland 23.1 17.1 15.9 14.9 13.3 12.3 12.1 10.9 10.2 8.8 8.5 8.4 8.1 7.3 7.3 6.5 6.1 6.1 5.3 4.7 0 5 10 15 20 25 Child poverty rate (% of children living in households with equivalent income lower than 50% of the national median) Cross-national comparisons in the European Union must now span a group of countries whose annual per capita incomes range from less than relative poverty line in the Netherlands has double the income of a child living at the median income level in a country like Hungary (Figure 3). define a co there is wid principle – the poor ar access to th activities an considered the society Boxes 6, 8 yardstick to countries, i the compa wealthier c incomes be a similar le Figure 4, fo comparison rates to the annual per than $31,0 Depriva These conc to increasin income me a more dire Within ind advanced c child depri available.T example, in Ireland, the the United the Child D Figure 1a i this need.A Fig. 4 A league table of relative child poverty, selected OECD countries relative poverty rate - children
  • 36. definition: relative child poverty rates before taxes and transfers and after taxes and transfers Australia: minus 18% Canada: minus 11% 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% Canada Malta Iceland Luxembourg Germany Slovenia France Norway Czech Republic Austria New Zealand Australia Finland United Kingdom Hungary Ireland large part the result of global economic trends. But that does not mean that it is inevitable. It is within the power of every government in the OECD to set realistic targets for reducing relative child poverty and to put in place the policies and the monitoring systems required to meet those targets.xii Figure 1b shows that a realistic target for the countries with relative child poverty rates below 10% would be to renew the struggle to reduce the rate to 5% or lower. Similarly, the 12 countries with rates between 10% and 15% should aim at lowering relative child poverty below 10%. The 8 countries currently with rates of 15% to 25% have the capacity to bring the rate below the 15% level as an essential first step. Announcing such targets is of course not enough. It is now more than 20 years, for example, since the Government of Canada announced that it would “seek to eliminate child poverty by the year 2000.” Yet Canada’s child poverty rate is higher Fig. 8 Relative child poverty rates before taxes and transfers (market income) and after taxes and transfers (disposable income) before taxes and transfers after taxes and transfers 1 8 I N N O C E N T I R E P O R T C A R D 1 0 Greece Italy Japan USA Spain Switzerland Latvia Romania Poland Bulgaria Portugal Estonia Lithuania Slovakia Cyprus Denmark Netherlands Belgium Sweden Canada Malta Iceland Child poverty rate (% of children living in households with income lower than 50% of the national median income) 0 10 20 30 40 50 for example, since the Government of Canada announced that it would “seek to eliminate child poverty by the year 2000.” Yet Canada’s child poverty rate is higher today than when that target was first announced.xiii In part this is because the commitment was not backed by a compelling political and public consensus or by any firm agreement on how child poverty should be defined and monitored.Targets can only be a first step. In the past, the European Commission has done much to help EU countries to develop common indicators for the measurement of child poverty and to develop plans for its reduction (see Box 7:The European Union: 2020 vision). But since the economic crisis began, child poverty appears to have slipped down the Commission’s agenda. Children barely feature, for example, in the Europe 2020 strategy. In particular, the Commission appears reluctant to publish cross-national data on falling government expenditures for children and families. Later this year (2012), the Commission is due to make proposals to member states on child well-being. Those proposals should include targets for specific reductions in child poverty by the end of this decade. Notes: For each country and for both income definitions, poverty calculations are based on a poverty line set at 50% of Switzerland Latvia Romania Poland Bulgaria Portugal Estonia Lithuania Slovakia Cyprus Denmark Netherlands Belgium Sweden Canada Malta Iceland Luxembourg Germany Slovenia France Norway Czech Republic Austria New Zealandthe struggle to reduce the rate to 5% or lower. Similarly, the 12 countries with rates between 10% and 15% should aim at lowering relative child poverty below 10%. The 8 countries currently with rates of 15% to 25% have the capacity to bring the rate below the 15% level as an essential first step. Announcing such targets is of course not enough. It is now more than 20 years, for example, since the Government of Canada announced that it would “seek to eliminate child poverty by the year 2000.” Yet Canada’s child poverty rate is higher today than when that target was first announced.xiii In part this is because the commitment was not backed by a compelling political and public consensus or by any firm agreement on how child poverty should be defined and monitored.Targets can only be a first step. In the past, the European Commission has done much to help EU countries to develop common indicators for the measurement of child poverty and to develop plans for its reduction (see Box 7:The European Union: 2020 vision). But since the economic crisis began, child poverty appears to have slipped down the Commission’s agenda. Children barely feature, for example, in government and child poverty rates
  • 37. The Face of Poverty Relative poverty rate: single-parent households = 54.6% (mostly headed by mothers) average family income = 2.43 million yen (= US$ 20 000) families with both parents = 6.73 million yen ( = US$ 57 000) Food relief groups plan nationwide network to address growing poverty.The Japan Times (November 12, 2015).
  • 38. Education High school attendance: general population = 98.4% children living in poverty = 90% University attendance: general population = 51% children living in poverty = 20% Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
  • 39. Crime Number of crimes in Japan falls to postwar low in 2015. The Japan Times (January 14, 2016).
  • 40. Which are more dangerous? 14-19 year olds over 65 year olds
  • 41. Which are more dangerous? 39, 501 crimes (2015) 47, 643 crimes (2015) Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
  • 42. Review 1. demographic change: demography is destiny 2. economic change: macroeconomic blues 3. socioeconomic change: (not) sharing the pie
  • 43. Review 1. demographic change: demography is destiny population is falling very low birth rate ageing population inverted population pyramid
  • 44. 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
  • 45. 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
  • 46. 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
  • 47. The Face of Poverty Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).
  • 48. growing perceptions of poverty Editorial: Poverty and the right to live. Mainichi Japan (May 5, 2015).
  • 49. Education Hagiwara,Y., & Reynolds, S. One in six Japanese children live in poverty, threatening their education, Future. The Japan Times (September 10, 2015).
  • 50. Education Hagiwara,Y., & Reynolds, S. One in six Japanese children live in poverty, threatening their education, Future. The Japan Times (September 10, 2015).
  • 51. Education Hoffman, M. Adding looming poverty to list of seniors’ woes. The Japan Times (August 15, 2015).