An Econometric Analysis of Non-enrollment in the National Pension by Foreign Residents in Japan

Yuchen Lu
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Yuchen Lu: Graduate School of Economics, Keio University

No 2024-027, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: In recent years, the rapid increase in the population of foreign residents in Japan has spurred more frequent discussions on social security issues concerning this group. Despite this, the non-enrollment rate in the National Pension among for- eign residents remains high, and the specific factors contributing to their non- enrollment remain unclear. This study conducted the first empirical analysis on the factors leading to the non-enrollment of foreign residents in Japan’s Na- tional Pension using publicly available data. The results indicate that residence statuses restricted by work activities, liquidity constraints, years of education, and enrollment in private pensions in Japan or public pensions in other coun- tries significantly influence the likelihood of foreign residents enrolling in Japan’s National Pension. Additionally, the study suggests that whether a foreign res- ident’s country or region of nationality possesses a universal pension plan or an equivalent system is a potential factor affecting their enrollment in Japan’s National Pension. This effect is particularly pronounced among foreign student populations.

Keywords: Foreign residents; Public pension; Social security; Probit regression analysis (search for similar items in EconPapers)
JEL-codes: F21 F54 H55 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-12-23
New Economics Papers: this item is included in nep-age
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2024-027

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