Now, the Japanese public pension system operates the principle of intergenerational support. In this system, it is susceptible to uncertainties such as changers in a nation's demographics and economical conditions, it may cause future generations to bear a disproportionately high share of the burden of such support, causing intergenerational disparity in contributions.
In addition to this intergenerational support, there is an “inner” generational support system in the Japanese pension system. Though all working generation (includes to students and unemployed workers) have to pay contributions, full-time housewives of salaried worker are exempt from contributions. Other all workers share the contributions of them. This structure of public pension's financial system causes working generations to making feel unfair.
In this paper, I discuss to be inequity by an income transfer through those Japanese public pension systems. Using the basic model that calculates the 1999the actuarial valuations presented by the ministry of welfare and labor, conduct various policy simulations. I'd like to think about a sustainable and an equity public pension's system through this research.
Even under the same assumption as Ministry of Labor and Welfare, what the intergenerational equity pension system exist became clear from result of analysis. If the baby boomers retire, the cost of the system reform is large. The reform in 2004 is the last chance of a drastic reform.
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