Social Sustainability
#23Key Findings
Japan performs relatively poorly (rank 23) in the category of social sustainability.
The education system is very strong, with primary education ranked among the best globally, and students excelling in math, science and reading. Many students attend private cram schools to prepare for competitive entrance exams. Early childhood enrollment rates are very high. Women are underrepresented in some higher education fields such as engineering.
Japan’s healthcare system is efficient and under strain due to the aging population. Public social spending risen substantially due to population aging. Integrated long-term care is provided at the municipal level. Public assistance levels are very low, as is the minimum wage.
Traditional gender roles remain entrenched. The state has sought to open up the labor market for women beyond marginal and part-time employment, with mixed success. Low fertility rates have made family policy an increasing focus. Pension replacement rates are low. Immigration is not encouraged, and integration policies are limited.
The education system is very strong, with primary education ranked among the best globally, and students excelling in math, science and reading. Many students attend private cram schools to prepare for competitive entrance exams. Early childhood enrollment rates are very high. Women are underrepresented in some higher education fields such as engineering.
Japan’s healthcare system is efficient and under strain due to the aging population. Public social spending risen substantially due to population aging. Integrated long-term care is provided at the municipal level. Public assistance levels are very low, as is the minimum wage.
Traditional gender roles remain entrenched. The state has sought to open up the labor market for women beyond marginal and part-time employment, with mixed success. Low fertility rates have made family policy an increasing focus. Pension replacement rates are low. Immigration is not encouraged, and integration policies are limited.
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Graph View
To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?
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Education policies are fully aligned with the goal of ensuring high-quality education and training.
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Education policies are largely aligned with the goal of ensuring high-quality education and training.
5
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3
4
3
Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
2
1
1
Education policies are not at all aligned with the goal of ensuring high-quality education and training.
Japan boasts a high-quality education system. In particular, primary education in Japan is considered among the best in the world. Japanese pupils are top performers in mathematics and science, as well as among the best in reading among all OECD countries. For cultural reasons, teachers enjoy high esteem in Japan. Despite the quality of education in public schools, however, many students attend private so-called cram schools to better prepare for entrance examinations to high schools or universities. The performance of Japanese students often comes at the cost of the “exam race,” anxiety about attending school or bullying.
In 2021, Japan spent 3.3% of GDP on education, which was not high compared to other OECD countries. However, due to the problem of an aging population, expenditure per student on educational institutions has remained above the OECD average. It is concerning that teachers’ salaries in real terms decreased by 2% between 2015 and 2022. If this trend continues, it may detrimentally influence the quality of teaching.
The curriculum guidelines are revised every 10 years by the Ministry of Education, Culture, Sports, Science and Technology (MEXT), which also authorizes textbooks of private publishers for use in schools. The 2017 guidelines put greater emphasis on interactive and experiential learning, communication in foreign languages, and competencies necessary to live independently in a rapidly changing society. While current curriculum guidelines do not specifically refer to the SDGs, they emphasize the importance of building a sustainable society.
The Open University of Japan, heavily subsidized by the government, was established in 1983 to offer distance learning courses. The concept of lifelong learning was introduced to Article 3 of the revised Basic Act on Education in 2006. Lifelong learning is supervised by the Lifelong Learning Promotion Division in the MEXT Education Policy Bureau. In line with SDG goal four, the Third Basic Plan for the Promotion of Education from 2018 emphasized lifelong learning by promoting school-community partnerships, creating a scholarship loan system to support re-learning, and enhancing education opportunities for the elderly and people with disabilities.
Key challenges facing Japan’s education system include teaching the flexible skills needed to succeed in a globalizing world, and improving the connection between tertiary education and labor market, which currently relies on the massive, annual recruitment of recent graduates. In addition, adult learning and reskilling in Japan is not as common as in comparable countries.
Citations:
Ministry of Education, Culture, Sports, Science and Technology. 2006. “Basic Act on Education.” https://www.mext.go.jp/en/policy/education/lawandplan/title01/detail01/1373798.htm
Ministry of Education, Culture, Sports, Science and Technology. 2018. “The Third Basic Plan for the Promotion of Education.” https://www.mext.go.jp/en/policy/education/lawandplan/title01/detail01/1373799.html
OECD. 2023. “Education at a Glance 2023: OECD Indicators: Japan.” https://www.oecd-ilibrary.org/sites/7acf81e3-en/index.html?itemId=/content/component/7acf81e3-en
OECD. 2023. “Mathematics performance (PISA) (indicator).” doi: 10.1787/04711c74-en.
OECD. 2023. “Reading performance (PISA) (indicator).” doi: 10.1787/79913c69-en. (accessed: 10 December 2023)
OECD. 2023. “Science performance (PISA) (indicator).” doi: 10.1787/91952204-en.
OECD. 2021. “Skills Outlook 2021 – Japan.” https://www.oecd.org/japan/Skills-Outlook-Japan-EN.pdf
OECD. 2018. “Education Policy in Japan.” https://www.oecd-ilibrary.org/education/education-policy-in-japan_9789264302402-en
The World Bank. “Government expenditure on education, total (% of GDP) – Japan.” https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?end=2021&locations=JP&start=1971
In 2021, Japan spent 3.3% of GDP on education, which was not high compared to other OECD countries. However, due to the problem of an aging population, expenditure per student on educational institutions has remained above the OECD average. It is concerning that teachers’ salaries in real terms decreased by 2% between 2015 and 2022. If this trend continues, it may detrimentally influence the quality of teaching.
The curriculum guidelines are revised every 10 years by the Ministry of Education, Culture, Sports, Science and Technology (MEXT), which also authorizes textbooks of private publishers for use in schools. The 2017 guidelines put greater emphasis on interactive and experiential learning, communication in foreign languages, and competencies necessary to live independently in a rapidly changing society. While current curriculum guidelines do not specifically refer to the SDGs, they emphasize the importance of building a sustainable society.
The Open University of Japan, heavily subsidized by the government, was established in 1983 to offer distance learning courses. The concept of lifelong learning was introduced to Article 3 of the revised Basic Act on Education in 2006. Lifelong learning is supervised by the Lifelong Learning Promotion Division in the MEXT Education Policy Bureau. In line with SDG goal four, the Third Basic Plan for the Promotion of Education from 2018 emphasized lifelong learning by promoting school-community partnerships, creating a scholarship loan system to support re-learning, and enhancing education opportunities for the elderly and people with disabilities.
Key challenges facing Japan’s education system include teaching the flexible skills needed to succeed in a globalizing world, and improving the connection between tertiary education and labor market, which currently relies on the massive, annual recruitment of recent graduates. In addition, adult learning and reskilling in Japan is not as common as in comparable countries.
Citations:
Ministry of Education, Culture, Sports, Science and Technology. 2006. “Basic Act on Education.” https://www.mext.go.jp/en/policy/education/lawandplan/title01/detail01/1373798.htm
Ministry of Education, Culture, Sports, Science and Technology. 2018. “The Third Basic Plan for the Promotion of Education.” https://www.mext.go.jp/en/policy/education/lawandplan/title01/detail01/1373799.html
OECD. 2023. “Education at a Glance 2023: OECD Indicators: Japan.” https://www.oecd-ilibrary.org/sites/7acf81e3-en/index.html?itemId=/content/component/7acf81e3-en
OECD. 2023. “Mathematics performance (PISA) (indicator).” doi: 10.1787/04711c74-en.
OECD. 2023. “Reading performance (PISA) (indicator).” doi: 10.1787/79913c69-en. (accessed: 10 December 2023)
OECD. 2023. “Science performance (PISA) (indicator).” doi: 10.1787/91952204-en.
OECD. 2021. “Skills Outlook 2021 – Japan.” https://www.oecd.org/japan/Skills-Outlook-Japan-EN.pdf
OECD. 2018. “Education Policy in Japan.” https://www.oecd-ilibrary.org/education/education-policy-in-japan_9789264302402-en
The World Bank. “Government expenditure on education, total (% of GDP) – Japan.” https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?end=2021&locations=JP&start=1971
To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?
10
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Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
8
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7
6
Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
5
4
3
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3
Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
2
1
1
Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
The Japanese education system ensures reasonably equitable access to education for all children. Article 4 of the Basic Act on Education, revised in 2006, prohibits “discrimination in education on account of race, creed, sex, social status, economic position, or family origin.” As many as 53% of children at age two are enrolled in early childhood education and care, the highest reported share among OECD countries. Elementary school and junior high school are mandatory in Japan. As many as 56% of Japanese between 25 and 64 years old have received tertiary education, and this percentage is even higher among 25 to 34 year olds (69% among women and 62% among men). The gender gap in upper secondary school completion is negligible. In recent years, the Ministry of Education, Culture, Sports, Science and Technology started promoting night classes at public junior high schools for those who had not completed their education due to war, poverty, bullying or illness.
The central and local governments subsidize education to facilitate access to all levels of education regardless of socioeconomic background. Private early childhood education centers are publicly subsidized and preschool education for all children between three and five years old is free. Education is compulsory up to junior high school, although not for foreign residents, and is free in public schools. In addition, pupils are provided with free textbooks. Moreover, students from low-earning families are eligible for tuition reductions, exemptions and scholarships for non-compulsory education. In December 2023, Prime Minister Kishida announced a plan to waive university tuition for households with three or more children, regardless of income, starting from FY2025.
Some controversies are related to the fact that cities such as Osaka and Tokyo started planning to remove tuition fees for all students, which would lead to unequal opportunities for students depending on their residential address. In addition, due to family responsibilities, women tend to participate less in lifelong learning. There are also significant gender differences in the distribution of university students across fields of study. In 2019, there were only 16% of women in the field of engineering, manufacturing and construction – the lowest share among OECD countries. Elite universities, whether public or private, usually only have 20% to 30% female students.
Citations:
Baseel, Casey. 2023. “Tokyo makes high school free for all families, even the rich ones.” Japan Today December 7.
“Families with three or more children to be given free university tuition.” The Asahi Shimbun, December 7. https://www.asahi.com/ajw/articles/15077602
“Night classes providing a second chance at missed junior high school education.” The Mainichi, November 12. https://mainichi.jp/english/articles/20171112/p2a/00m/0na/008000c
OECD. 2023. “Education at a Glance 2023.” https://www.oecd-ilibrary.org/docserver/e13bef63-en.pdf?expires=1702223598&id=id&accname=guest&checksum=43C5B09F634C976B33326CF2106120CE
OECD. 2021. “Education at a Glance 2021: OECD Indicators: Japan.” https://www.oecd-ilibrary.org/sites/1426642c-en/index.html?itemId=/content/component/1426642c-en
Toda, Sayuri. 2023. “Osaka Pref. to make all high school tuition free, eliminate income limit in Japan first.” https://mainichi.jp/english/articles/20230826/p2a/00m/0na/016000c
The central and local governments subsidize education to facilitate access to all levels of education regardless of socioeconomic background. Private early childhood education centers are publicly subsidized and preschool education for all children between three and five years old is free. Education is compulsory up to junior high school, although not for foreign residents, and is free in public schools. In addition, pupils are provided with free textbooks. Moreover, students from low-earning families are eligible for tuition reductions, exemptions and scholarships for non-compulsory education. In December 2023, Prime Minister Kishida announced a plan to waive university tuition for households with three or more children, regardless of income, starting from FY2025.
Some controversies are related to the fact that cities such as Osaka and Tokyo started planning to remove tuition fees for all students, which would lead to unequal opportunities for students depending on their residential address. In addition, due to family responsibilities, women tend to participate less in lifelong learning. There are also significant gender differences in the distribution of university students across fields of study. In 2019, there were only 16% of women in the field of engineering, manufacturing and construction – the lowest share among OECD countries. Elite universities, whether public or private, usually only have 20% to 30% female students.
Citations:
Baseel, Casey. 2023. “Tokyo makes high school free for all families, even the rich ones.” Japan Today December 7.
“Families with three or more children to be given free university tuition.” The Asahi Shimbun, December 7. https://www.asahi.com/ajw/articles/15077602
“Night classes providing a second chance at missed junior high school education.” The Mainichi, November 12. https://mainichi.jp/english/articles/20171112/p2a/00m/0na/008000c
OECD. 2023. “Education at a Glance 2023.” https://www.oecd-ilibrary.org/docserver/e13bef63-en.pdf?expires=1702223598&id=id&accname=guest&checksum=43C5B09F634C976B33326CF2106120CE
OECD. 2021. “Education at a Glance 2021: OECD Indicators: Japan.” https://www.oecd-ilibrary.org/sites/1426642c-en/index.html?itemId=/content/component/1426642c-en
Toda, Sayuri. 2023. “Osaka Pref. to make all high school tuition free, eliminate income limit in Japan first.” https://mainichi.jp/english/articles/20230826/p2a/00m/0na/016000c
Graph View
To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?
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9
Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
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6
Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
5
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3
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Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
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Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
Article 25 of the Japanese constitution stipulates that “all people shall have the right to maintain the minimum standards of wholesome and cultured living.” The Public Assistance Act from 1950, in turn, guarantees all citizens receive public assistance “in a nondiscriminatory and equal manner.”
Electricity, water supply, sanitation, public transport, digital infrastructure and financial services are widely available in Japan. According to the OECD Better Life Index, housing expenditure in Japan amounts to 21.8% of gross adjusted disposable income, which is above the OECD average of 20%. Additionally, 93.6% of dwellings have private indoor flushing toilets, which is below the OECD average of 97%. Although Japan boasts universal access to essential services, the poverty rate has been increasing since the beginning of the period of economic stagnation in the early 1990s.
While public assistance is provided without discrimination based on social background, sex or reasons for falling into poverty, it is based on certain discriminatory rules. Public assistance generally does not cover those who are able to work but cannot find employment, those who participate in other welfare programs or those who are judged able to receive support from their family members. Public assistance is mostly provided to elderly households, and households including people with disabilities and sick people. It can also be received by those in work whose income is below the minimum threshold to cover living expenses. There are few specific policies to support single parents, which results not only in high poverty rates but also comparatively high employment rates among single parents.
Citations:
OECD. “Better Life Index – Housing.” https://www.oecdbetterlifeindex.org/topics/housing/
Prime Minister of Japan and His Cabinet. 1946. “The Constitution of Japan.” https://japan.kantei.go.jp/constitution_and_government_of_japan/constitution_e.html
Mesmer, Philipp. 2023. “Single Mothers in Japan Face Discrimination and Barriers to Support.” Le Monde June 23. https://www.lemonde.fr/en/international/article/2023/06/23/single-mothers-in-japan-face-discrimination-and-barriers-to-support_6036057_4.html
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
Electricity, water supply, sanitation, public transport, digital infrastructure and financial services are widely available in Japan. According to the OECD Better Life Index, housing expenditure in Japan amounts to 21.8% of gross adjusted disposable income, which is above the OECD average of 20%. Additionally, 93.6% of dwellings have private indoor flushing toilets, which is below the OECD average of 97%. Although Japan boasts universal access to essential services, the poverty rate has been increasing since the beginning of the period of economic stagnation in the early 1990s.
While public assistance is provided without discrimination based on social background, sex or reasons for falling into poverty, it is based on certain discriminatory rules. Public assistance generally does not cover those who are able to work but cannot find employment, those who participate in other welfare programs or those who are judged able to receive support from their family members. Public assistance is mostly provided to elderly households, and households including people with disabilities and sick people. It can also be received by those in work whose income is below the minimum threshold to cover living expenses. There are few specific policies to support single parents, which results not only in high poverty rates but also comparatively high employment rates among single parents.
Citations:
OECD. “Better Life Index – Housing.” https://www.oecdbetterlifeindex.org/topics/housing/
Prime Minister of Japan and His Cabinet. 1946. “The Constitution of Japan.” https://japan.kantei.go.jp/constitution_and_government_of_japan/constitution_e.html
Mesmer, Philipp. 2023. “Single Mothers in Japan Face Discrimination and Barriers to Support.” Le Monde June 23. https://www.lemonde.fr/en/international/article/2023/06/23/single-mothers-in-japan-face-discrimination-and-barriers-to-support_6036057_4.html
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
To what extent do existing institutions and policies ensure high-quality services and basic income support?
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9
9
Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
8
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7
6
Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
5
4
3
4
3
Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
2
1
1
Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
According to the Public Assistance Act, assistance in cash transfers is calculated by subtracting a household’s final income from the minimum monthly cost of living. The minimum living cost, established for different regions, takes into account categories such as livelihood, housing, occupational, educational, medical, maternity and funeral expenses. One-time allowances are also provided for the purchase of beds, clothes for newborns and electricity costs. Further financial assistance is provided under the Act on the Promotion of Policy on Child Poverty from 2013 and the Law to Assist Those Experiencing Hardship from 2014. The latter law introduced housing security benefits for those who have problems paying rent as well as the temporary provision of lodging to people who do not have a fixed place to live.
Public assistance is barely sufficient to cover the minimum costs of essential services, such as housing, water, sanitation and energy. Poverty in Japan is also alleviated by the collective culture, which obliges family members to take care of those in need.
One key measure to support low-income households has been minimum wage increases. Although formally set by minimum wage commissions, since about the mid-2000s, all governments have welcomed higher rates and minimum wage rates have often grown faster than average wages. Nonetheless, the Japanese minimum wage is still comparatively low and cannot be considered a living wage. This particularly puts non-regular workers at risk. In October 2023, it was raised from JPY 1,072 to JPY 1,113 (€7) per hour for Tokyo in response to higher inflation.
The Kishida government provided several packages of extraordinary financial assistance to low-income households. In March 2023, it was decided that low-income families would receive JPY 30,000 (€190) and an additional JPY 50,000 (€320) would be provided to them on a per-child basis. These one-time benefits, however, barely improve the financial situation of poor families.
Citations:
An, Zhiyong, and Kohei Asao. 2023. “Options to Strengthen the Social Safety Net in Japan.” International Monetary Fund Selected Papers, May.
“Act on the Promotion of Policy on Child Poverty.” 26 June 2013. https://www.japaneselawtranslation.go.jp/en/laws/view/3619/en
Kyodo News. 2023. “Japan mulls support for low-income earners in new economic package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
“Minimum Wage Increased in Japan from 01 October 2023 – October 02, 2023.” 2023. https://wageindicator.org/salary/minimum-wage/minimum-wages-news/2023/minimum-wage-increased-in-japan-from-01-october-2023-october-02-2023
National Institute of Population and Social Security Research. 2014. “Social Security in Japan 2014.” https://www.ipss.go.jp/s-info/e/ssj2014/pdf/SSJ2014.pdf
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
“Seikatsu Konkyûsha Shiritsu Shien-hô” [Law to Assist those Experiencing Hardship]. 2013. https://elaws.e-gov.go.jp/document?lawid=425AC0000000105
Public assistance is barely sufficient to cover the minimum costs of essential services, such as housing, water, sanitation and energy. Poverty in Japan is also alleviated by the collective culture, which obliges family members to take care of those in need.
One key measure to support low-income households has been minimum wage increases. Although formally set by minimum wage commissions, since about the mid-2000s, all governments have welcomed higher rates and minimum wage rates have often grown faster than average wages. Nonetheless, the Japanese minimum wage is still comparatively low and cannot be considered a living wage. This particularly puts non-regular workers at risk. In October 2023, it was raised from JPY 1,072 to JPY 1,113 (€7) per hour for Tokyo in response to higher inflation.
The Kishida government provided several packages of extraordinary financial assistance to low-income households. In March 2023, it was decided that low-income families would receive JPY 30,000 (€190) and an additional JPY 50,000 (€320) would be provided to them on a per-child basis. These one-time benefits, however, barely improve the financial situation of poor families.
Citations:
An, Zhiyong, and Kohei Asao. 2023. “Options to Strengthen the Social Safety Net in Japan.” International Monetary Fund Selected Papers, May.
“Act on the Promotion of Policy on Child Poverty.” 26 June 2013. https://www.japaneselawtranslation.go.jp/en/laws/view/3619/en
Kyodo News. 2023. “Japan mulls support for low-income earners in new economic package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
“Minimum Wage Increased in Japan from 01 October 2023 – October 02, 2023.” 2023. https://wageindicator.org/salary/minimum-wage/minimum-wages-news/2023/minimum-wage-increased-in-japan-from-01-october-2023-october-02-2023
National Institute of Population and Social Security Research. 2014. “Social Security in Japan 2014.” https://www.ipss.go.jp/s-info/e/ssj2014/pdf/SSJ2014.pdf
Public Assistance Act. 1950. https://www.japaneselawtranslation.go.jp/en/laws/view/24/en#je_ch1at2
“Seikatsu Konkyûsha Shiritsu Shien-hô” [Law to Assist those Experiencing Hardship]. 2013. https://elaws.e-gov.go.jp/document?lawid=425AC0000000105
Graph View
To what extent does current health policy hinder or facilitate health system resilience?
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Health policies are fully aligned with the goal of achieving a resilient health system.
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Health policies are largely aligned with the goal of achieving a resilient health system.
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Health policies are only somewhat aligned with the goal of achieving a resilient health system.
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1
Health policies are not at all aligned with the goal of achieving a resilient health system.
Digitalization of healthcare services has accelerated since the establishment of the Digital Agency in September 2021. The gradual implementation of the My Number system – a 12-digit personal number for each citizen – is critical for this reform. Health insurance cards are planned to be integrated with My Number in 2024, but there have repeatedly been problems with the system’s implementation. In May 2023, it was found that 60% of medical institutions with an online insurance confirmation system had experienced issues with My Number, including linking patients’ data with wrong individuals.
The COVID-19 pandemic exposed structural deficiencies of the Japanese healthcare system in crisis situations, such as problems with coordinating the allocation of medical resources, insufficient collaboration between healthcare providers, local governments and public agencies, inability of the government to mobilize the resources of private hospitals, lack of clearly designated gatekeepers to healthcare and inaccuracy of official statistics on medical resources. As a result, Japan’s response to the COVID-19 pandemic was relatively slow. Moreover, due to a rigid drug approval system, the initial COVID-19 vaccination rollout proceeded at a slow pace.
Public social spending has increased massively in the last three decades, turning Japan from a small public welfare state to one that spends a similar amount as the large Western European welfare states. Most of the spending hike is due to increased spending on old age and healthcare, and is linked to demographic aging. While spending per head has been kept relatively stable, the rapid expansion of the elderly population has made it difficult to rein in total spending. The government has implemented some measures to offset rising healthcare costs, for example, introducing a community-based integrated care system, which combines various kinds of care for elders at the local level. Japan was also one of the first countries in the world to introduce Long-Term Care Insurance, to which all residents 40 years of age or older must contribute. The challenges posed by demographic aging, however, cannot be considered solved and will grow in severity over the coming years.
Citations:
Japan International Cooperation Agency. 2022. “Community-based Integrated Care in Japan – Suggestions for developing countries from cases in Japan.” https://openjicareport.jica.go.jp/pdf/1000048192.pdf
“My Number glitches undermine Japan’s digital future.” The Japan Times, June 9. https://www.japantimes.co.jp/opinion/2023/06/09/editorials/my-number-failure/
Nakahara, Shinji, Haruhiko Inada, Masao Ichikawa, and Jun Tomio. 2021. “Japan’s Slow Response to Improve Access to Inpatient Care for COVID-19 Patients.” Front Public Health 9: 791182. https://doi.org/10.3389/fpubh.2021.791182
OECD. 2023. “Health at a Glance 2023 Country Note Japan.” Paris: OECD. https://www.oecd.org/japan/health-at-a-glance-Japan-EN.pdf
Swift, Rocky. 2021. “Japan vaccine chief blames drug approval system for slow inoculation drive.” Reuters May 13.
The COVID-19 pandemic exposed structural deficiencies of the Japanese healthcare system in crisis situations, such as problems with coordinating the allocation of medical resources, insufficient collaboration between healthcare providers, local governments and public agencies, inability of the government to mobilize the resources of private hospitals, lack of clearly designated gatekeepers to healthcare and inaccuracy of official statistics on medical resources. As a result, Japan’s response to the COVID-19 pandemic was relatively slow. Moreover, due to a rigid drug approval system, the initial COVID-19 vaccination rollout proceeded at a slow pace.
Public social spending has increased massively in the last three decades, turning Japan from a small public welfare state to one that spends a similar amount as the large Western European welfare states. Most of the spending hike is due to increased spending on old age and healthcare, and is linked to demographic aging. While spending per head has been kept relatively stable, the rapid expansion of the elderly population has made it difficult to rein in total spending. The government has implemented some measures to offset rising healthcare costs, for example, introducing a community-based integrated care system, which combines various kinds of care for elders at the local level. Japan was also one of the first countries in the world to introduce Long-Term Care Insurance, to which all residents 40 years of age or older must contribute. The challenges posed by demographic aging, however, cannot be considered solved and will grow in severity over the coming years.
Citations:
Japan International Cooperation Agency. 2022. “Community-based Integrated Care in Japan – Suggestions for developing countries from cases in Japan.” https://openjicareport.jica.go.jp/pdf/1000048192.pdf
“My Number glitches undermine Japan’s digital future.” The Japan Times, June 9. https://www.japantimes.co.jp/opinion/2023/06/09/editorials/my-number-failure/
Nakahara, Shinji, Haruhiko Inada, Masao Ichikawa, and Jun Tomio. 2021. “Japan’s Slow Response to Improve Access to Inpatient Care for COVID-19 Patients.” Front Public Health 9: 791182. https://doi.org/10.3389/fpubh.2021.791182
OECD. 2023. “Health at a Glance 2023 Country Note Japan.” Paris: OECD. https://www.oecd.org/japan/health-at-a-glance-Japan-EN.pdf
Swift, Rocky. 2021. “Japan vaccine chief blames drug approval system for slow inoculation drive.” Reuters May 13.
To what extent does current health policy hinder or facilitate achieving high-quality healthcare?
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9
9
Health policies are fully aligned with the goal of achieving high-quality healthcare.
8
7
6
7
6
Health policies are largely aligned with the goal of achieving high-quality healthcare.
5
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3
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3
Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
2
1
1
Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Japan boasts one of the most efficient healthcare systems in the world. However, at the same time, the system is under increasing pressure due to demographic aging. According to the OECD’s Health at a Glance 2023, Japan performed better than the OECD average on 73% of indicators related to healthcare quality. Japan has one of the longest healthy life expectancies and lowest infant mortalities in the world. Japan’s health budget accounts for 11.5% of GDP, more than the OECD average of 9.2%. There are 12.6 hospital beds in Japan per 1,000 population, compared to 4.3 on average in the OECD, and 2.6 doctors per 1,000 population (OECD: 3.7). The majority of hospitals suffer from doctor shortages but waiting times for medical treatment are relatively short. The care sector is also massively impacted by a lack of workers, with 70% of providers reporting staff shortages. Policies to fill these positions with foreign workers have so far been insufficient.
National health promotion strategies advocate for healthy lifestyles, including dietary habits, physical activity, rest, and discouragement of smoking and drinking alcohol. Prefectural healthcare delivery visions contain detailed plans for treating various diseases and developing different types of healthcare. Prefectures are responsible for annual inspections of hospitals, but public reporting on hospital performance is voluntary. Hospitals are evaluated by the Japan Council for Quality Healthcare, which develops clinical guidelines but cannot penalize medical institutions for poor performance.
Performance has been improved by reducing the number of hospital beds, though the number remains high by international comparison. A 2022 analysis for the World Economic Forum claims there are some deficiencies with primary care and chronic care, but overall the quality of care provided was good. Digitalization of health data is limited to specific localities and a national system is still missing, which means Japan is behind many other countries in this regard.
To cope with the challenge of population aging, after introducing long-term insurance in 2000, Japan established a community-based integrated care system, which combined housing, medical, preventive and long-term care, as well as daily living support for older people at the municipal level.
Citations:
Japan International Cooperation Agency. 2022. “Community-based Integrated Care in Japan – Suggestions for Developing Countries from Cases in Japan.” https://openjicareport.jica.go.jp/pdf/1000048192.pdf
Ministry of Health, Labour and Welfare. 2012. “A Basic Direction for Comprehensive Implementation of National Health Promotion.” https://www.mhlw.go.jp/file/06-Seisakujouhou-10900000-Kenkoukyoku/0000047330.pdf
“Nearly 70% of care service providers in Japan face labor shortage.” The Japan Times, October 7. https://www.japantimes.co.jp/business/2023/10/07/caregiving-labor-shortage/
Nomura, Shuhei, et al. 2022. “Sustainability and Resilience in Japan’s Health System.” London: LSE Consulting. https://www3.weforum.org/docs/WEF_PHSSR_Japan_final_2022.pdf
OECD. 2023. “Health at a Glance 2023.” https://www.oecd.org/japan/health-at-a-glance-Japan-EN.pdf
National health promotion strategies advocate for healthy lifestyles, including dietary habits, physical activity, rest, and discouragement of smoking and drinking alcohol. Prefectural healthcare delivery visions contain detailed plans for treating various diseases and developing different types of healthcare. Prefectures are responsible for annual inspections of hospitals, but public reporting on hospital performance is voluntary. Hospitals are evaluated by the Japan Council for Quality Healthcare, which develops clinical guidelines but cannot penalize medical institutions for poor performance.
Performance has been improved by reducing the number of hospital beds, though the number remains high by international comparison. A 2022 analysis for the World Economic Forum claims there are some deficiencies with primary care and chronic care, but overall the quality of care provided was good. Digitalization of health data is limited to specific localities and a national system is still missing, which means Japan is behind many other countries in this regard.
To cope with the challenge of population aging, after introducing long-term insurance in 2000, Japan established a community-based integrated care system, which combined housing, medical, preventive and long-term care, as well as daily living support for older people at the municipal level.
Citations:
Japan International Cooperation Agency. 2022. “Community-based Integrated Care in Japan – Suggestions for Developing Countries from Cases in Japan.” https://openjicareport.jica.go.jp/pdf/1000048192.pdf
Ministry of Health, Labour and Welfare. 2012. “A Basic Direction for Comprehensive Implementation of National Health Promotion.” https://www.mhlw.go.jp/file/06-Seisakujouhou-10900000-Kenkoukyoku/0000047330.pdf
“Nearly 70% of care service providers in Japan face labor shortage.” The Japan Times, October 7. https://www.japantimes.co.jp/business/2023/10/07/caregiving-labor-shortage/
Nomura, Shuhei, et al. 2022. “Sustainability and Resilience in Japan’s Health System.” London: LSE Consulting. https://www3.weforum.org/docs/WEF_PHSSR_Japan_final_2022.pdf
OECD. 2023. “Health at a Glance 2023.” https://www.oecd.org/japan/health-at-a-glance-Japan-EN.pdf
To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?
10
9
9
Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
8
7
6
7
6
Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
5
4
3
4
3
Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
2
1
1
Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
Article 25 of the Japanese constitution obliges the government to promote public health “in all spheres of life.” All Japanese citizens and resident non-citizens have to enroll either in the statutory health insurance system or in the public social assistance program, with coverage reaching around 98% of the population. At least 70% of the cost of healthcare services is covered by the state, while the insured pay 30% of costs, with reduced coinsurance rates for children up to six years old, people with chronic illnesses and elders. Benefits are comprehensive, covering hospital and mental healthcare, prescription drugs, outpatient and home healthcare, as well as dental care. In addition, there are a range of subsidies for some chronic diseases, as well as people living with disabilities and mental illnesses. There is also a yearly maximum for out-of-pocket payment for households using healthcare and long-term services, which varies depending on age and income.
There are some disparities in healthcare access between regions. Due to the merger of many municipalities at the beginning of the 21st century, the provision of some healthcare services and long-term care services have become problematic in depopulated rural areas. The reduction of health disparities between prefectures has been specified as one of the goals of national health promotion strategies since 2012.
Citations:
Prime Minister of Japan and His Cabinet. 1946. “The Constitution of Japan.” https://japan.kantei.go.jp/constitution_and_government_of_japan/constitution_e.html
Tikkanen, Roosa, Robin Osborn, Elias Mossialos, Ana Djordjevic, George A. Wharton, and Ryozo Matsuda. 2020. “International Healthcare System Profiles: Japan.” https://www.commonwealthfund.org/international-health-policy-center/countries/japan
There are some disparities in healthcare access between regions. Due to the merger of many municipalities at the beginning of the 21st century, the provision of some healthcare services and long-term care services have become problematic in depopulated rural areas. The reduction of health disparities between prefectures has been specified as one of the goals of national health promotion strategies since 2012.
Citations:
Prime Minister of Japan and His Cabinet. 1946. “The Constitution of Japan.” https://japan.kantei.go.jp/constitution_and_government_of_japan/constitution_e.html
Tikkanen, Roosa, Robin Osborn, Elias Mossialos, Ana Djordjevic, George A. Wharton, and Ryozo Matsuda. 2020. “International Healthcare System Profiles: Japan.” https://www.commonwealthfund.org/international-health-policy-center/countries/japan
Graph View
How committed is the government to ensuring gender equality in all respects?
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9
9
The government is clearly committed to the goal of ensuring gender equality.
8
7
6
7
6
The government is largely committed to the goal of ensuring gender equality.
5
4
3
4
3
The government is only somewhat committed to the goal of ensuring gender equality.
2
1
1
The government is not at all committed to the goal of ensuring gender equality.
Japan is a socially conservative society where traditional gender roles are still highly relevant. A gendered division of labor is still deeply entrenched, with domestic care work predominantly remaining in the hands of women and take-up rates of parental leave by men still very low, though growing. However, due to population aging among other things, the role of women has changed significantly over the last few decades. Today, employment rates of women are high in international comparison and double-income households have become the norm.
Japanese politics, and especially its many conservative governments, have been slow to adapt to this changing reality. However, since the mid-2000s, they have increasingly sought to promote change through policy. Prime Minister Abe received international attention for his so-called womenomics strategy, which promised to open the labor market for women beyond marginal and part-time employment. One key element is the expansion of childcare facilities and the current administration has announced it will significantly increase spending in this area. Furthermore, Japan has built a large and encompassing institutional structure to report on the status of gender equality and to develop initiatives.
Gender equality in Japan is regulated by the Basic Act for a Gender-Equal Society from 1999, which obliges national and local governments to develop and implement measures to redress disparities between men and women in political, economic, social and cultural spheres. The government submits an annual report on the implementation of the Basic Act to the Diet. Every few years, basic plans for gender equality are formulated, which contain specific numerical targets. The Fifth Basic Plan for Gender Equality from March 2021 is broken into various action plans covering fields, such as the expansion of women’s participation in decision-making; securing equal opportunities and treatment between women and men, and work-life balance; gender equality in academia, science and technology; and elimination of all forms of violence against women. Targets are relatively detailed and include goals such as increasing the proportion of women section chiefs in national administration to 30% by the end of FY2025.
Since the establishment of the post of ministers of state for special missions in 2001, there has always been one tasked with coordinating governmental efforts regarding gender equality. The Cabinet Office also maintains the Council for Gender Equality, composed of ministers and private-sector experts, as well as the Gender Equality Bureau, which typically use indicators for measuring progress and setting tasks.
Despite all these formal efforts, women remain severely underrepresented in Japanese politics, both on the national and local level. Only about 10% of members of parliament in the lower house are female and even in the current cabinet – which features a record number of female ministers – their share does not exceed 20%. In addition, not a single woman was appointed to one of the 54 vice-ministerial or parliamentary vice-ministerial posts, down from 11. Similar patterns are visible in elite universities, where only 20% to 30% of graduates in executive positions and in most elite occupations are women. In 2018, it emerged that some medical schools deliberately downgraded entrance tests of women compared to men. This practice has been stopped since and in newer tests female applicants appear to have outperformed their male peers (McCurry 2022).
Critics have pointed out that Japan’s governments seem not genuinely interested in improving the position of women in society but rather look at their economic contribution as workers that can help mitigate the impact of labor shortages. Prime Minister Kishida’s comment that women ministers would bring “sense and empathy which are unique to women” was widely criticized as sexist and as an indication of how little has changed in attitudes.
Citations:
Gender Equality Bureau Cabinet Office. 1999. “Basic Act for Gender-Equal Society.” https://www.gender.go.jp/english_contents/about_danjo/lbp/laws/pdf/laws_01.pdf
Gender Equality Bureau Cabinet Office. 2021. “The Fifth Basic Plan for Gender Equality (Overview).”
Kim, Soyoung. 2023. “Japan’s New Cabinet Has a Record Number of Women. So What?” The Diplomat, October 3. https://thediplomat.com/2023/10/japans-new-cabinet-has-a-record-number-of-women-so-what/
McCurry, Justin. 2022. “Women outperform men in Japanese medical school entrance exams, years after testing scandal.” The Guardian February 22. https://www.theguardian.com/world/2022/feb/22/women-outperform-men-in-japanese-medical-school-entrance-exams-years-after-testing-scandal
Pitchford, Samuel. 2020. “New Anti-Harassment Law Introduced in Japan.” Human Rights Pulse July 2. https://www.humanrightspulse.com/mastercontentblog/new-anti-harassment-law-introduced-in-japan
Ueno, Chizuko. 2019. “The University of Tokyo 2019 Matriculation Ceremony Congratulatory Address.” https://wan.or.jp/article/show/8348
Japanese politics, and especially its many conservative governments, have been slow to adapt to this changing reality. However, since the mid-2000s, they have increasingly sought to promote change through policy. Prime Minister Abe received international attention for his so-called womenomics strategy, which promised to open the labor market for women beyond marginal and part-time employment. One key element is the expansion of childcare facilities and the current administration has announced it will significantly increase spending in this area. Furthermore, Japan has built a large and encompassing institutional structure to report on the status of gender equality and to develop initiatives.
Gender equality in Japan is regulated by the Basic Act for a Gender-Equal Society from 1999, which obliges national and local governments to develop and implement measures to redress disparities between men and women in political, economic, social and cultural spheres. The government submits an annual report on the implementation of the Basic Act to the Diet. Every few years, basic plans for gender equality are formulated, which contain specific numerical targets. The Fifth Basic Plan for Gender Equality from March 2021 is broken into various action plans covering fields, such as the expansion of women’s participation in decision-making; securing equal opportunities and treatment between women and men, and work-life balance; gender equality in academia, science and technology; and elimination of all forms of violence against women. Targets are relatively detailed and include goals such as increasing the proportion of women section chiefs in national administration to 30% by the end of FY2025.
Since the establishment of the post of ministers of state for special missions in 2001, there has always been one tasked with coordinating governmental efforts regarding gender equality. The Cabinet Office also maintains the Council for Gender Equality, composed of ministers and private-sector experts, as well as the Gender Equality Bureau, which typically use indicators for measuring progress and setting tasks.
Despite all these formal efforts, women remain severely underrepresented in Japanese politics, both on the national and local level. Only about 10% of members of parliament in the lower house are female and even in the current cabinet – which features a record number of female ministers – their share does not exceed 20%. In addition, not a single woman was appointed to one of the 54 vice-ministerial or parliamentary vice-ministerial posts, down from 11. Similar patterns are visible in elite universities, where only 20% to 30% of graduates in executive positions and in most elite occupations are women. In 2018, it emerged that some medical schools deliberately downgraded entrance tests of women compared to men. This practice has been stopped since and in newer tests female applicants appear to have outperformed their male peers (McCurry 2022).
Critics have pointed out that Japan’s governments seem not genuinely interested in improving the position of women in society but rather look at their economic contribution as workers that can help mitigate the impact of labor shortages. Prime Minister Kishida’s comment that women ministers would bring “sense and empathy which are unique to women” was widely criticized as sexist and as an indication of how little has changed in attitudes.
Citations:
Gender Equality Bureau Cabinet Office. 1999. “Basic Act for Gender-Equal Society.” https://www.gender.go.jp/english_contents/about_danjo/lbp/laws/pdf/laws_01.pdf
Gender Equality Bureau Cabinet Office. 2021. “The Fifth Basic Plan for Gender Equality (Overview).”
Kim, Soyoung. 2023. “Japan’s New Cabinet Has a Record Number of Women. So What?” The Diplomat, October 3. https://thediplomat.com/2023/10/japans-new-cabinet-has-a-record-number-of-women-so-what/
McCurry, Justin. 2022. “Women outperform men in Japanese medical school entrance exams, years after testing scandal.” The Guardian February 22. https://www.theguardian.com/world/2022/feb/22/women-outperform-men-in-japanese-medical-school-entrance-exams-years-after-testing-scandal
Pitchford, Samuel. 2020. “New Anti-Harassment Law Introduced in Japan.” Human Rights Pulse July 2. https://www.humanrightspulse.com/mastercontentblog/new-anti-harassment-law-introduced-in-japan
Ueno, Chizuko. 2019. “The University of Tokyo 2019 Matriculation Ceremony Congratulatory Address.” https://wan.or.jp/article/show/8348
Graph View
To what extent does the current family policy approach support or hinder unpaid family care work?
10
9
9
Family policies are fully aligned with the goal of creating the conditions for strong families.
8
7
6
7
6
Family policies are largely aligned with the goal of creating the conditions for strong families.
5
4
3
4
3
Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
2
1
1
Family policies are not at all aligned with the goal of creating family-friendly conditions.
Against the background of a rapidly aging society and low fertility rates, the Japanese government has been paying increasing attention to problems related to the costs of sustaining families. Parents of newborn children are entitled to a maximum of 14 months of paid post-natal leave – eight months for mothers and six months for fathers. This can be extended until the child reaches 24 months of age if the child was denied admission to a childcare center. There is also unpaid leave for a maximum of five days per year in case of a child’s illness or injury, as well as paid leave of up to 93 days per lifetime for a family member who requires long-term care. Employers are prohibited from imposing excessive overtime on employees who have children below compulsory school age or who discriminate against workers who take parental or family care leaves. Parents of children below the age of three are entitled to an unpaid reduction in working hours to six hours per day. Fees for early childhood education and care services are fully subsidized for children between three and five years of age.
While the family support system is generous, not all families can take full advantage of it. Only women covered by the Employees’ Health Insurance system may receive maternity benefit payments. Moreover, paternity and parental leave are unavailable for self-employed workers, day laborers, some workers on fixed-term contracts and same-sex couples. Overall, Japanese politics is still strongly shaped by traditional ideas of family, which may partially explain why single-parent households face significantly higher poverty risks than in most other economically advanced democracies.
In April 2023, the Children and Families Agency was established, combining various child-related departments previously spread across different ministries. The agency is composed of three departments in charge of policy planning based on data analysis, pregnancy and childbirth support, care for preschool children, measures for single-parent families, prevention of child abuse and poverty reduction.
The Kishida government announced in the summer of 2023 that all families will be entitled to receive a child allowance of JPY 15,000 (€100) per month for children up to three years old and JPY 10,000 (€65) per month for children up to 15 years old. From October 2024, the payment will increase to JPY 30,000 (€200) for the third and subsequent children. In addition, the Kishida government provided several extraordinary financial assistance packages to low-income households, such as JPY 30,000 (€190) per household, with an additional JPY 50,000 (€320) per child, announced in March 2023.
Citations:
“Child Allowances in Japan to be Expanded from Oct. 2024.” The Yomiuri Shimbun, June 15. https://japannews.yomiuri.co.jp/politics/politics-government/20230615-116165
Kyodo News. 2023. “Japan Mulls Support for Low-Income Earners in New Economic Package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
Nakazato, Hideki, Junko Takezawa, and Junko Nishimura. 2023. “Japan.” International Network on Leave Policies and Research. https://www.leavenetwork.org/fileadmin/user_upload/k_leavenetwork/annual_reviews/2023/Japan2023.pdf
Iwamoto, Kentaro. 2023. “Aging Japan opens Children and Families Agency: 5 things to know.” Nikkei Asia April 3. https://asia.nikkei.com/Politics/Aging-Japan-opens-Children-and-Families-Agency-5-things-to-know
While the family support system is generous, not all families can take full advantage of it. Only women covered by the Employees’ Health Insurance system may receive maternity benefit payments. Moreover, paternity and parental leave are unavailable for self-employed workers, day laborers, some workers on fixed-term contracts and same-sex couples. Overall, Japanese politics is still strongly shaped by traditional ideas of family, which may partially explain why single-parent households face significantly higher poverty risks than in most other economically advanced democracies.
In April 2023, the Children and Families Agency was established, combining various child-related departments previously spread across different ministries. The agency is composed of three departments in charge of policy planning based on data analysis, pregnancy and childbirth support, care for preschool children, measures for single-parent families, prevention of child abuse and poverty reduction.
The Kishida government announced in the summer of 2023 that all families will be entitled to receive a child allowance of JPY 15,000 (€100) per month for children up to three years old and JPY 10,000 (€65) per month for children up to 15 years old. From October 2024, the payment will increase to JPY 30,000 (€200) for the third and subsequent children. In addition, the Kishida government provided several extraordinary financial assistance packages to low-income households, such as JPY 30,000 (€190) per household, with an additional JPY 50,000 (€320) per child, announced in March 2023.
Citations:
“Child Allowances in Japan to be Expanded from Oct. 2024.” The Yomiuri Shimbun, June 15. https://japannews.yomiuri.co.jp/politics/politics-government/20230615-116165
Kyodo News. 2023. “Japan Mulls Support for Low-Income Earners in New Economic Package.” https://english.kyodonews.net/news/2023/09/6a64d712fbb6-japan-pm-urges-ministers-to-use-all-tools-in-new-economic-package.html
Nakazato, Hideki, Junko Takezawa, and Junko Nishimura. 2023. “Japan.” International Network on Leave Policies and Research. https://www.leavenetwork.org/fileadmin/user_upload/k_leavenetwork/annual_reviews/2023/Japan2023.pdf
Iwamoto, Kentaro. 2023. “Aging Japan opens Children and Families Agency: 5 things to know.” Nikkei Asia April 3. https://asia.nikkei.com/Politics/Aging-Japan-opens-Children-and-Families-Agency-5-things-to-know
Graph View
To what extent does the current pension policy approach prevent poverty among senior citizens?
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9
9
Pension policies are fully aligned with the goal of preventing old-age poverty.
8
7
6
7
6
Pension policies are largely aligned with the goal of preventing old-age poverty.
5
4
3
4
3
Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
2
1
1
Pension policies are not at all aligned with the goal of preventing old-age poverty.
Japan spends 9.3% of GDP on its public pension system, which is above the OECD average (7.7%). All Japanese between 20 and 59 years old are enrolled in the basic pension scheme, while all employees are additionally enrolled in the earnings-related plan. Self-employed workers pay a flat-rate contribution and employees pay 18.3% of their salaries, with half of it covered by employers. The retirement age is 65.
The basic pension benefit in 2022 amounted to only JPY 777,800 (€5,000) per year for workers who have contributed fully and without interruption. Workers are exempt from contributing to the basic pension during maternity periods and parental leaves. Unemployed persons remain in the basic pension scheme and may be fully or partly exempt from paying a flat-rate contribution depending on household income. Periods spent out of work due to childcare are taken into account in the earnings-related pension insurance scheme up to three years per child.
Net pension replacement rates from mandatory schemes in Japan are among the lowest, while the senior citizen poverty rate is among the highest in the OECD. However, most regular workers receive large lump sum payments at the end of their careers and these payments constitute an important source of income in old age. Actual poverty rates are, therefore, lower than income figures suggest. Nonetheless, workers with non-standard work biographies and, in particular non-regular workers, rarely receive such payments and thus are particularly hard hit by the low replacement level of the public pension system. Alternative ways to save for old age, such as Nippon Individual Savings Accounts (NISA) and Individual Defined Contribution Accounts (iDeCo), have only been rolled out in recent years and may come too late for workers who will retire within the next decade. Moreover, they require that wages are high enough so that workers are able to make contributions, which is rarely the case in low-paying non-regular jobs.
Citations:
Horioka, Charles Yuji. 2009. “The (Dis)saving Behavior of the Aged in Japan.” NBER Working Paper 15601.
http://www.nber.org/papers/w15601
OECD. 2023. “Pensions at a Glance 2023: OECD and G20 Indicators.” https://doi.org/10.1787/678055dd-en
OECD. 2023. “Pensions at a Glance 2023: Country Profiles – Japan.” https://www.oecd.org/els/public-pensions/PAG2023-country-profile-Japan.pdf
Siripala, Thisanka. 2023. “Surviving Old Age Is Getting Harder in Japan.” https://thediplomat.com/2023/01/surviving-old-age-is-getting-harder-in-japan/
The basic pension benefit in 2022 amounted to only JPY 777,800 (€5,000) per year for workers who have contributed fully and without interruption. Workers are exempt from contributing to the basic pension during maternity periods and parental leaves. Unemployed persons remain in the basic pension scheme and may be fully or partly exempt from paying a flat-rate contribution depending on household income. Periods spent out of work due to childcare are taken into account in the earnings-related pension insurance scheme up to three years per child.
Net pension replacement rates from mandatory schemes in Japan are among the lowest, while the senior citizen poverty rate is among the highest in the OECD. However, most regular workers receive large lump sum payments at the end of their careers and these payments constitute an important source of income in old age. Actual poverty rates are, therefore, lower than income figures suggest. Nonetheless, workers with non-standard work biographies and, in particular non-regular workers, rarely receive such payments and thus are particularly hard hit by the low replacement level of the public pension system. Alternative ways to save for old age, such as Nippon Individual Savings Accounts (NISA) and Individual Defined Contribution Accounts (iDeCo), have only been rolled out in recent years and may come too late for workers who will retire within the next decade. Moreover, they require that wages are high enough so that workers are able to make contributions, which is rarely the case in low-paying non-regular jobs.
Citations:
Horioka, Charles Yuji. 2009. “The (Dis)saving Behavior of the Aged in Japan.” NBER Working Paper 15601.
http://www.nber.org/papers/w15601
OECD. 2023. “Pensions at a Glance 2023: OECD and G20 Indicators.” https://doi.org/10.1787/678055dd-en
OECD. 2023. “Pensions at a Glance 2023: Country Profiles – Japan.” https://www.oecd.org/els/public-pensions/PAG2023-country-profile-Japan.pdf
Siripala, Thisanka. 2023. “Surviving Old Age Is Getting Harder in Japan.” https://thediplomat.com/2023/01/surviving-old-age-is-getting-harder-in-japan/
To what extent does the current pension policy approach hinder or promote intergenerational equity?
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9
9
Pension policies are fully aligned with the goal of achieving intergenerational equity.
8
7
6
7
6
Pension policies are largely aligned with the goal of achieving intergenerational equity.
5
4
3
4
3
Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
2
1
1
Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Japanese governments have increasingly set incentives for elderly workers to continue working after reaching the retirement age of 65. Between the age of 65 and 70 benefits can increase by 8.7% for every year retirement is postponed. It is permitted to combine the receipt of a pension with work, though after exceeding a certain base amount, the earnings-related pension payment is reduced. Employees above 70 years old are exempt from paying pension contributions.
The labor market participation rates of elderly workers have always been high in Japan but were declining until 2012. Since 2012, they have increased, which may also reflect that public pension benefits, payments from corporate pension schemes and severance pay have declined. Since a large part of financial security stems from assets accrued during working life, continuing work can be a way of compensating for reductions in wages, pension payments and lower returns on investments due to low interest rates.
The adjustment of benefit and contribution levels is partially technocratic and provides the government with tools to curb benefit increases. Since 2004, the government can use the so-called macroeconomic slide to keep pension raises below wage increases and inflation, which in 2024 will be used for the second time in a row. A key structural problem is that the ratio of pensioners and working-age population is continuously worsening. In the 2004 pension reform, the practice of raising contributions to maintain a stable level of benefits was replaced with contributions capped at 18.3% of salaries and a demographically modified indexation program.
The financial integrity and generational equity of the pension system is supported further by the Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world. It manages the reserves of the public pension system and GPIF investments have successfully increased the return on investment over the years. The reserves are meant to stabilize the ratio between benefits and contributions over a period of 100 years.
Younger cohorts in Japan will still receive lower benefits in the future and must compensate for these decreases by saving through other means. To encourage this, Nippon Individual Savings Accounts (NISA) and Individual Defined Contribution Accounts (iDeCo) have been introduced and expanded over the last decade. However, for these accounts to work as desired, workers need to earn enough to save for old age in addition to traditional pension schemes. Non-regular and low-wage workers, whose wages hardly increase over the life cycle and who rarely receive bonus payments, thus face a particularly high risk of poverty in old age.
Citations:
Keohane, David. 2023. “Japan government pension acts on population strain.” Financial Times October 2. https://www.ft.com/content/2aaf07fd-3f53-4376-9d8c-7322ba2e3203
Komamura, Kohei. 2007. “The 2004 Pension Reform and the Impact of Rapid Aging in Japan.” The Japanese Journal of Social Security Policy 6 (1): 144-156.
Nakagawa, Takemi. 2023. “Japan to Curb Pension Benefit Increases for 2nd Straight Year.” NikkeiAsia November 16. https://asia.nikkei.com/Politics/Japan-to-curb-pension-benefit-increases-for-2nd-straight-year
OECD. 2023. “Pensions at a Glance 2023: OECD and G20 Indicators.” https://doi.org/10.1787/678055dd-en
OECD. 2023. “Pensions at a Glance 2023: Country Profiles – Japan.” https://www.oecd.org/els/public-pensions/PAG2023-country-profile-Japan.pdf
Siripala, Thisanka. 2023. “Surviving Old Age Is Getting Harder in Japan.” The Diplomat January 19. https://thediplomat.com/2023/01/surviving-old-age-is-getting-harder-in-japan
The labor market participation rates of elderly workers have always been high in Japan but were declining until 2012. Since 2012, they have increased, which may also reflect that public pension benefits, payments from corporate pension schemes and severance pay have declined. Since a large part of financial security stems from assets accrued during working life, continuing work can be a way of compensating for reductions in wages, pension payments and lower returns on investments due to low interest rates.
The adjustment of benefit and contribution levels is partially technocratic and provides the government with tools to curb benefit increases. Since 2004, the government can use the so-called macroeconomic slide to keep pension raises below wage increases and inflation, which in 2024 will be used for the second time in a row. A key structural problem is that the ratio of pensioners and working-age population is continuously worsening. In the 2004 pension reform, the practice of raising contributions to maintain a stable level of benefits was replaced with contributions capped at 18.3% of salaries and a demographically modified indexation program.
The financial integrity and generational equity of the pension system is supported further by the Government Pension Investment Fund (GPIF), one of the largest public pension funds in the world. It manages the reserves of the public pension system and GPIF investments have successfully increased the return on investment over the years. The reserves are meant to stabilize the ratio between benefits and contributions over a period of 100 years.
Younger cohorts in Japan will still receive lower benefits in the future and must compensate for these decreases by saving through other means. To encourage this, Nippon Individual Savings Accounts (NISA) and Individual Defined Contribution Accounts (iDeCo) have been introduced and expanded over the last decade. However, for these accounts to work as desired, workers need to earn enough to save for old age in addition to traditional pension schemes. Non-regular and low-wage workers, whose wages hardly increase over the life cycle and who rarely receive bonus payments, thus face a particularly high risk of poverty in old age.
Citations:
Keohane, David. 2023. “Japan government pension acts on population strain.” Financial Times October 2. https://www.ft.com/content/2aaf07fd-3f53-4376-9d8c-7322ba2e3203
Komamura, Kohei. 2007. “The 2004 Pension Reform and the Impact of Rapid Aging in Japan.” The Japanese Journal of Social Security Policy 6 (1): 144-156.
Nakagawa, Takemi. 2023. “Japan to Curb Pension Benefit Increases for 2nd Straight Year.” NikkeiAsia November 16. https://asia.nikkei.com/Politics/Japan-to-curb-pension-benefit-increases-for-2nd-straight-year
OECD. 2023. “Pensions at a Glance 2023: OECD and G20 Indicators.” https://doi.org/10.1787/678055dd-en
OECD. 2023. “Pensions at a Glance 2023: Country Profiles – Japan.” https://www.oecd.org/els/public-pensions/PAG2023-country-profile-Japan.pdf
Siripala, Thisanka. 2023. “Surviving Old Age Is Getting Harder in Japan.” The Diplomat January 19. https://thediplomat.com/2023/01/surviving-old-age-is-getting-harder-in-japan
Graph View
To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?
10
9
9
Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
8
7
6
7
6
Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
5
4
3
4
3
Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
2
1
1
Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
For many years, Japan has struggled to develop a coherent immigration policy. While the need for migration is widely recognized by politicians and society, not least due to worsening labor shortages, policymakers have long tried to assure the public that problems of integration as seen in Western Europe could be avoided by either inviting migrants of Japanese descent from South America or by making labor migration temporary. One of the largest programs in the latter sense has been the Technical Intern Training Program, which has allowed unskilled workers to stay in Japan for up to five years. Working conditions have often been harsh and there have been a number of scandals over the years where employers were found to exploit or mistreat migrant workers. In 2023, the Kishida government announced it would replace the program with a formalized scheme for low-wage workers.
Japanese governments have gradually opened some pathways to long-term settlement in Japan for highly skilled workers but also for medium-skilled workers who possess skills that are in short supply. However, the system for specified skilled worker visas – introduced in 2019 – is rather restrictive, with rigid quotas for workers in different categories. Most workers cannot bring their families to Japan or hope to stay in Japan more than five years. Language and cultural competency requirements continue to constitute obstacles to foreign professionals, including graduates of Japanese universities.
The Migrant Integration Policy Index described Japan’s approach in 2019 as “immigration without integration,” pointing particularly to problems with education, political participation and non-discrimination. Support for intercultural education throughout the school curriculum is limited, foreign permanent residents lack the right to vote in local elections and there is no dedicated anti-discrimination law. However, there has been a slight improvement in the political participation of immigrants, as several municipalities have granted foreign residents the right to participate in local referenda. Moreover, legal migrants and asylum-seekers have access to the Japanese healthcare system. But the number of recognized refugees is very low and most asylum-seekers have lived in Japan in a precarious legal state.
The period of 10 years of continuous residence in Japan is a relatively high requirement for permanent residency, though highly skilled professionals and permanent residents’ family members can apply earlier. The naturalization process is not particularly difficult, but dual citizenship is forbidden. Gaining Japanese citizenship has become easier for the Zainichi – Koreans living in Japan for several generations – whose rights had been limited in the past.
Immigration procedures are supervised by the Immigration Bureau of the Ministry of Justice, which has been extremely reluctant to recognize the refugee status of immigrants. In November 2022, the UN Human Rights Committee expressed its concerns over poor health conditions in immigration detention facilities and the low rate of refugee recognition in Japan. It also appealed to Japan to improve the precarious situation of persons who lost their visas or resident status and are on “provisional release,” without the possibility of engaging in income-generating activities.
Citations:
UN Human Rights Committee. 2022. “Concluding observations on the seventh periodic report of Japan.” https://docstore.ohchr.org/SelfServices/FilesHandler.ashx?enc=6QkG1d%2FPPRiCAqhKb7yhsuBJT%2Fi29ui%2Fb4Ih9%2FUIJO87S0HPMR1PnCPt3LQO6EolLe709268JsfEokJ6QyNqFgswSBy1rovzRJaQqYHclTttywUvvrbUCI%2F6iBnTGHkY
“Abolition of Technical Intern Training Program: Improve Treatment of Foreign Workers under New System.” The Yomiuri Shimbun November 10. https://japannews.yomiuri.co.jp/editorial/yomiuri-editorial/20231110-148773/
Liu-Farrer, Gracia, Green, Anne E., and Cole, Matthew A. 2023. “Immigration and Labor Shortages: Learning from Japan and the United Kingdom.” Asian and Pacific Migration Journal 32 (2). https://doi.org/10.1177/01171968231188
Migrant Integration Policy Index. 2019. “Japan.” https://www.mipex.eu/japan
Rehm, Maximilien Xavier. 2023. “Why Won’t Kishida Adopt a Formal Immigration Policy?” East Asia Forum, November 23. https://www.eastasiaforum.org/2023/11/23/why-wont-kishida-adopt-a-formal-immigration-policy/
Strausz, Michael. 2019. Help (not) Wanted: Immigration Politics in Japan. Albany, NY: SUNY Press.
Takao, Yasuo. 2022. “Civic Rights for Foreign Residents Sparks Backlash in Japan.” East Asia Forum February 12. https://www.eastasiaforum.org/2022/02/12/civic-rights-for-foreign-residents-sparks-backlash-in-japan/
Japanese governments have gradually opened some pathways to long-term settlement in Japan for highly skilled workers but also for medium-skilled workers who possess skills that are in short supply. However, the system for specified skilled worker visas – introduced in 2019 – is rather restrictive, with rigid quotas for workers in different categories. Most workers cannot bring their families to Japan or hope to stay in Japan more than five years. Language and cultural competency requirements continue to constitute obstacles to foreign professionals, including graduates of Japanese universities.
The Migrant Integration Policy Index described Japan’s approach in 2019 as “immigration without integration,” pointing particularly to problems with education, political participation and non-discrimination. Support for intercultural education throughout the school curriculum is limited, foreign permanent residents lack the right to vote in local elections and there is no dedicated anti-discrimination law. However, there has been a slight improvement in the political participation of immigrants, as several municipalities have granted foreign residents the right to participate in local referenda. Moreover, legal migrants and asylum-seekers have access to the Japanese healthcare system. But the number of recognized refugees is very low and most asylum-seekers have lived in Japan in a precarious legal state.
The period of 10 years of continuous residence in Japan is a relatively high requirement for permanent residency, though highly skilled professionals and permanent residents’ family members can apply earlier. The naturalization process is not particularly difficult, but dual citizenship is forbidden. Gaining Japanese citizenship has become easier for the Zainichi – Koreans living in Japan for several generations – whose rights had been limited in the past.
Immigration procedures are supervised by the Immigration Bureau of the Ministry of Justice, which has been extremely reluctant to recognize the refugee status of immigrants. In November 2022, the UN Human Rights Committee expressed its concerns over poor health conditions in immigration detention facilities and the low rate of refugee recognition in Japan. It also appealed to Japan to improve the precarious situation of persons who lost their visas or resident status and are on “provisional release,” without the possibility of engaging in income-generating activities.
Citations:
UN Human Rights Committee. 2022. “Concluding observations on the seventh periodic report of Japan.” https://docstore.ohchr.org/SelfServices/FilesHandler.ashx?enc=6QkG1d%2FPPRiCAqhKb7yhsuBJT%2Fi29ui%2Fb4Ih9%2FUIJO87S0HPMR1PnCPt3LQO6EolLe709268JsfEokJ6QyNqFgswSBy1rovzRJaQqYHclTttywUvvrbUCI%2F6iBnTGHkY
“Abolition of Technical Intern Training Program: Improve Treatment of Foreign Workers under New System.” The Yomiuri Shimbun November 10. https://japannews.yomiuri.co.jp/editorial/yomiuri-editorial/20231110-148773/
Liu-Farrer, Gracia, Green, Anne E., and Cole, Matthew A. 2023. “Immigration and Labor Shortages: Learning from Japan and the United Kingdom.” Asian and Pacific Migration Journal 32 (2). https://doi.org/10.1177/01171968231188
Migrant Integration Policy Index. 2019. “Japan.” https://www.mipex.eu/japan
Rehm, Maximilien Xavier. 2023. “Why Won’t Kishida Adopt a Formal Immigration Policy?” East Asia Forum, November 23. https://www.eastasiaforum.org/2023/11/23/why-wont-kishida-adopt-a-formal-immigration-policy/
Strausz, Michael. 2019. Help (not) Wanted: Immigration Politics in Japan. Albany, NY: SUNY Press.
Takao, Yasuo. 2022. “Civic Rights for Foreign Residents Sparks Backlash in Japan.” East Asia Forum February 12. https://www.eastasiaforum.org/2022/02/12/civic-rights-for-foreign-residents-sparks-backlash-in-japan/
Graph View
How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?
10
9
9
The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
8
7
6
7
6
The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
5
4
3
4
3
The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
2
1
1
The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
The Japanese government has traditionally emphasized comprehensive security based on the provision of official development assistance (ODA). Although three decades of economic stagnation have led to cuts in Japan’s ODA budget, Japan remains the fourth-largest ODA donor in the OECD. ODA is managed by the Ministry of Foreign Affairs and the Japan International Cooperation Agency. Since 2005, poverty reduction has been one of the top priorities in Japan’s ODA charter.
The Development Cooperation Charter was revised in June 2023 to further emphasize security and the rule of law, as well as promote participation of the private sector. The charter specifies four basic policies: contributing to peace and prosperity, human security in the new era, co-creation of social values through dialogue and cooperation with developing countries, and leading the dissemination and implementation of international rules and guidelines based on inclusiveness, transparency and fairness. Japan’s ODA is directed in a balanced and fairly predictable way to aims such as poverty eradication, food and energy security, quality infrastructure, and disaster risk reduction.
White papers on development cooperation have been published on an annual basis. In recent years, Japan provided health and medical equipment and vaccines, as well as assisted in networking regional hospitals and developing the capacity of healthcare workers in low-income regions. It provided food aid to many developing countries suffering from diseases and natural disasters, transferred technology in areas such as construction and communications, and promoted science and innovation in recipient states.
According to ODA Evaluation Guidelines, evaluation of relevance of policies, effectiveness of results, and appropriateness of processes is based on the Plan-Do-Check-Act Cycle and conducted mostly by third-party evaluators. In addition to assessing the contribution of ODA to the development of partner states, the relationship with Japan’s national interests is also examined. Relevant numerical indicators are identified for various priority issues. Evaluation is accompanied by recommendations that include targets, objectives, actions, priorities and a timeline. Even though Japan has increasingly used ODA as a vehicle to advance its national interests, poverty reduction has remained the prime goal of development cooperation.
Citations:
Ministry of Foreign Affairs of Japan. 2023. “Development Cooperation Chart.” https://www.mofa.go.jp/files/100514705.pdf
Ministry of Foreign Affairs of Japan. 2023. “White Paper on Development Cooperation 2021: Japan’s International Cooperation.” https://www.mofa.go.jp/files/100497686.pdf
ODA Evaluation Division, Minister’s Secretariat, Ministry of Foreign Affairs of Japan. 2021. “ODA Evaluation Guidelines.” https://www.mofa.go.jp/policy/oda/evaluation/basic_documents/pdfs/guidelines2021.pdf
OECD. 2022. “Official development assistance (ODA).” https://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/official-development-assistance.htm
The Development Cooperation Charter was revised in June 2023 to further emphasize security and the rule of law, as well as promote participation of the private sector. The charter specifies four basic policies: contributing to peace and prosperity, human security in the new era, co-creation of social values through dialogue and cooperation with developing countries, and leading the dissemination and implementation of international rules and guidelines based on inclusiveness, transparency and fairness. Japan’s ODA is directed in a balanced and fairly predictable way to aims such as poverty eradication, food and energy security, quality infrastructure, and disaster risk reduction.
White papers on development cooperation have been published on an annual basis. In recent years, Japan provided health and medical equipment and vaccines, as well as assisted in networking regional hospitals and developing the capacity of healthcare workers in low-income regions. It provided food aid to many developing countries suffering from diseases and natural disasters, transferred technology in areas such as construction and communications, and promoted science and innovation in recipient states.
According to ODA Evaluation Guidelines, evaluation of relevance of policies, effectiveness of results, and appropriateness of processes is based on the Plan-Do-Check-Act Cycle and conducted mostly by third-party evaluators. In addition to assessing the contribution of ODA to the development of partner states, the relationship with Japan’s national interests is also examined. Relevant numerical indicators are identified for various priority issues. Evaluation is accompanied by recommendations that include targets, objectives, actions, priorities and a timeline. Even though Japan has increasingly used ODA as a vehicle to advance its national interests, poverty reduction has remained the prime goal of development cooperation.
Citations:
Ministry of Foreign Affairs of Japan. 2023. “Development Cooperation Chart.” https://www.mofa.go.jp/files/100514705.pdf
Ministry of Foreign Affairs of Japan. 2023. “White Paper on Development Cooperation 2021: Japan’s International Cooperation.” https://www.mofa.go.jp/files/100497686.pdf
ODA Evaluation Division, Minister’s Secretariat, Ministry of Foreign Affairs of Japan. 2021. “ODA Evaluation Guidelines.” https://www.mofa.go.jp/policy/oda/evaluation/basic_documents/pdfs/guidelines2021.pdf
OECD. 2022. “Official development assistance (ODA).” https://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/official-development-assistance.htm