Intergenerational Inequality Caused by the Social Security System(in Japanese)

Wataru Suzuki, Minoru Masujima, Kosuke Shiraishi and Akihiro Morishige

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: We have built a quantitative model of the pension, medical care and aged care by improving Suzuki(2006) and estimated intergenerational inequality caused by the social security system. It should be noted that the model be able to reproduce the long-term projection made by the Japanese Government. Intergenerational inequality can be represented by the net benefit rate defined as the ratio of the net benefit by the social security system to the lifetime income. Estimation result shows that the net benefit rate is 1.0% for the generation born in 1950, |5.3 “ for the generation born in 1970 and |13.0 “ for the generation born in 2010. Thus, the younger generation suffers the larger net burden and intergenerational inequality should not be ignored.

Pages: 53 pages
Date: 2012-01
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Persistent link: https://EconPapers.repec.org/RePEc:esj:esridp:281

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