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Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014 Setsuya FUKUDA / Itaru SATO (National Institute of Population and Social Security Research) Kazuyuki TERADA / Takahiro TORIYABE / Hidehiko ICHIMURA / Naohiro OGAWA (The University of Tokyo) Rikiya Matsukura (Nihon University) WITTGENSTEIN CENTRE CONFERENCE 2017 AGENTA FINAL CONFERENCE: ECONOMIC CONSEQUENCES OF POPULATION AGEING AND INTERGENERATIONAL EQUITY Vienna, 20 November 2017
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Page 1: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

Household Production and Consumption over the Life Cycle in Japan:

NTA and NTTA summaries by gender from 1999 to 2014

Setsuya FUKUDA / Itaru SATO(National Institute of Population and Social Security Research)

Kazuyuki TERADA / Takahiro TORIYABE / Hidehiko ICHIMURA / Naohiro OGAWA(The University of Tokyo)

Rikiya Matsukura (Nihon University)

WITTGENSTEIN CENTRE CONFERENCE 2017

AGENTA FINAL CONFERENCE: ECONOMIC CONSEQUENCES OF POPULATION AGEING AND INTERGENERATIONAL EQUITY

Vienna,20 November 2017

Page 2: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

1. Aim of the paper

1. Updating Japanese NTA in terms of data and method

2. Providing descriptive figures of generational economy in comparison with gender during the 2000s in Japan

3. Assessing various policy reform using the NTA / NTTA life cycle accounts

2

Page 3: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

2. Background

3

Page 4: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

2-1. Population aging and decline

0 100 2000

20

65

75

100+

1,613 (13%)

1,734 (14%)

7,028 (55%)

2,190 (17%)

Total Pop: 127.1 mil.2015

0 100 2000

20

65

75

100+

2,180 (18%)

1,497 (12%)

6,635 (54%)

1,943 (16%)

Total Pop: 122.5 mil.2025

0 100 2000

20

65

75

100+

2,248 (26%)

1,133 (13%)

4,189 (48%)

1,2370 (14%)

Total Pop: 88.1 mil.2065

0 100 2000

20

65

75

100+

597 (5%)

7,590 (61%)

Total Pop: 123.6 mil.

892 (7%)

3,249 (26%)

1990

Sources: Statistics Bureau, Population Census of Japan and NIPSSR (2017) Population Projection of Japan: 2016-2065. 4

Page 5: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

0

5

10

15

20

25

30

35

40

45

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060

% o

f age

65+

in to

tal p

op.

DEU FRA JPN KOR SWE USA

2-2. Prospects of population aging

Sources: World Bank World Development Indicators for 1960-2015. UN (2017) The World Population Prospects, The 2017 Revision for 2016-2060. NIPSSR (2017) Population Projection for Japan: 2016-2065 for Japan.

5

Page 6: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

2-3. Population aging and social expenditure

1980

2013

1980

2013

1980 1990

2000

2010 2013

1980

2013

1980

2013

1980

2013

5

10

15

20

25

30

35

8 10 12 14 16 18 20 22 24 26

in %

of G

DP

% of pop. age 65+

Social Expenditure in % of GDP

JapanUSA

FRA SWE

DEU

UK

Sources: OECD (2016): OECD Social Expenditure Database, OECD Health Statistics 2016. 6

Page 7: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

2-4. Social security expenditure in Japan

0

10

20

30

40

50

60

70

80

90

100

0102030405060708090

100110120130

1950 1960 1970 1980 1990 2000 2010

in 1

0,00

0 Ye

n (=

75.5

0 EU

R)

in Tr

illion

Yen

(=7.

5 Bi

llion

EUR)

Per Capita expenditure on social benefit (right axis)

Welfare and others

Medical Care

Pension

6,800EUR

90 bln. EUR

Sources: NIPSSR (2017) Financial Statistics of Social Security in Japan 2015. 7

Page 8: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

3. Policy Reforms during the 2000s• (Formal childcare: Creating more slots in big cities, but no time-series data)

• Formal education (High school)

• Female employment

• (Long work hours / Dependent spouse privileges in tax, pension and health care: stalled…)

• Elderly care

• (Medical care: various adjustments on the price of medical services)

• (Pension: Increases in pension age and contribution fee)8

Page 9: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

4. Focus• Focus 1: 1999 vs 2004 Introduction of the new social insurance for elderly care (2000.4)- Changes in monetary and physical costs of elderly care in the households and government

• Focus 2: 2009 vs 2014 Introduction of free tuition fee for high school + child allowances (2010.4)- Changes in monetary costs of education in the household

• Focus 3: 1999 vs 2014Gradual expansion of policy support for female employment (1999.4 -)- Changes in gender gaps in paid and unpaid work during the 2000s

9

Page 10: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

5. DataData and Year Description

NTA• Private sector

• Public sector

• Macro controls

Family Income and Expenditure Survey(1999, 2004, 2009, 2014)

Education- Statistical abstract on education, culture,

sports, science and technology Health- Survey of medical care benefit expenditures,- Estimates of National Medical Care Expenditure Elderly care- Annual report on the long-term care

insurance

SNA2008

Around 60,000 households and 170,000 individuals

Statistics from the government reports

NTTA• Time Use Data

Survey on Time Use and Leisure Activities (1996, 2001, 2006, 2011)

Over 70,000 households and 170,000 individuals

The specialist replacement method

10

Page 11: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

6. Limitation

• Only life cycle accounts

• Ignoring institutionalized population

• Ignoring heterogeneity other than age and sex

• Not final values

11

Page 12: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7. NTA / NTTA overview for 2014

12

Page 13: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-1. Economic Life Cycle in 2014

0

100

200

300

400

500

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

LI C

Per Capita value

13

Page 14: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-2. Economic Life Cycle in 2014 by Sex

0

200

400

600

800Ja

pane

se Y

en in

10,

000

0 5 1015202530354045505560657075808590Age

LI C

Male

0

200

400

600

800

Japa

nese

Yen

in 1

0,00

0

0 5 1015202530354045505560657075808590Age

LI C

Female

14

Page 15: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-3. NTTA in 2014 by Sex

0

100

200

300Ja

pane

se Y

en in

10,00

0

0 10 20 30 40 50 60 70 80 90Age

NTTA Prod NTTA Cons

Male

0

100

200

300

Japa

nese

Yen

in 10

,000

0 10 20 30 40 50 60 70 80 90Age

NTTA Prod NTTA Cons

Female

15

Page 16: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-4. NTA + NTTA in 2014 by Sex

0

200

400

600

800Ja

pane

se Y

en in

10,

000

0 5 1015202530354045505560657075808590Age

LI + NTTA prod C + NTTA cons

Male

0

200

400

600

800

Japa

nese

Yen

in 1

0,00

0

0 5 1015202530354045505560657075808590Age

LI + NTTA prod C + NTTA cons

Female

16

Page 17: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-5. NTA+NTTA: Production in 2014 by Sex

0

200

400

600

800

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

NTTA NTA

Male

0

200

400

600

800

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

NTTA NTA

Female

2014

17

Page 18: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-6. NTA+NTTA: Consumption in 2014 by Sex

100

200

300

400

500

600

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

NTTA NTA public NTA private

Male

100

200

300

400

500

600

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

NTTA NTA public NTA private

Female

2014

18

Page 19: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

7-7. Life Cycle Deficit in 2014

-300

-200

-100

0

100

200

300

400

500

600

0 10 20 30 40 50 60 70 80 90

Japa

nese

Yen

in 1

0,00

0

AgePrivate Public NTTA LCD

-600

-400

-200

0

200

400

600

800

1000

0 10 20 30 40 50 60 70 80 90

Japa

nese

Yen

in 1

0 bi

lli.

AgePrivate Public NTTA LCD

1. Per Capita 2. Population Aggregate

19

Page 20: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8. Examination of the Focus Points

20

Page 21: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-1. Introduction of “the long-term care insurance” (2000.4)

0

50

100

150

200

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

Public: Elderly carePublic: Medical care

NTTA CarePrivate: Health

1999

0

50

100

150

200

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

Public: Elderly carePublic: Medical care

NTTA CarePrivate: Health

2004

Health Consumption: 1999 vs 2004

21

Page 22: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-2. NTA differences before and after the LT care insurance

-20

0

20

40

60

80Ja

pane

se Y

en in

10,

000

65 70 75 80 85 90Age

Public: Elderly carePublic: Medical care

NTTA CarePrivate: Health

Male

-20

0

20

40

60

80

Japa

nese

Yen

in 1

0,00

0

65 70 75 80 85 90Age

Public: Elderly carePublic: Medical care

NTTA CarePrivate: Health

Female

Difference: (2004 - 1999)

22

Page 23: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-3. NTTA differences before and after the LT care insurance

-1

0

1

2

Hour

s/Wee

k

45 50 55 60 65 70 75 80 85 90Age

NTTA: care prod NTTA: care consNTTA: hwk prod

Male

-1

0

1

2

Hour

s/Wee

k

45 50 55 60 65 70 75 80 85 90Age

NTTA: care prod NTTA: care consNTTA: hwk prod

Female

Difference: (2004 - 1999)

23

Page 24: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-4. Introduction of “free tuition fee for high school” + “child allowances” (2010.4)

0

20

40

60

80Ja

pane

se Y

en in

10,

000

10 15 20 25 30Age

2009 2014

Private Coonsumption for Education in 2009 and 2014

24

Page 25: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-5. Introduction of “free tuition fee for high school” + “child allowances” (2010.4)

0

20

40

60

80Ja

pane

se Y

en in

10,0

00

10 15 20 25 30Age

2009 2014

Male

0

20

40

60

80

Japa

nese

Yen

in 1

0,000

10 15 20 25 30Age

2009 2014

Female

Private Consumption for Education: 1999 vs 2004

25

Page 26: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-6. Gradual expansion of policy support for female employment (1999.4 -)

0

20

40

60

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Unpaid 1999Unpaid 2004Unpaid 2009Unpaid 2014

Paid 1999Paid 2004Paid 2009Paid 2014

Male

0

20

40

60

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Unpaid 1999Unpaid 2004Unpaid 2009Unpaid 2014

Paid 1999Paid 2004Paid 2009Paid 2014

Female

Hours Spent for Paid and Unpaid Work by Sex

26

Page 27: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-7. Period differences in time use for paid and unpaid work by sex: 1999-2014

-10

-5

0

5

10

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Paid 2004Paid 2009Paid 2014

Unpaid 2004Unpaid 2009Unpaid 2014

Male

-10

-5

0

5

10

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Paid 2004Paid 2009Paid 2014

Unpaid 2004Unpaid 2009Unpaid 2014

Female

Time Differences from 1999 by Sex

27

Page 28: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-8. Gender differences in time use for paid and unpaid work 1999 vs 2014

-40

-20

0

20

40

Hours

/Wee

k

0 5 1015202530354045505560657075808590Age

HouseworkChildcareElderly care

Other careWork

1999

-40

-20

0

20

40

Hours

/Wee

k

0 5 1015202530354045505560657075808590Age

HouseworkChildcareElderly care

Other careWork

2014

Time Use, Female - Male Differences

28

Page 29: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-9. Gender comparison of total production time

0

20

40

60

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Male Female

1999

0

20

40

60

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Male Female

2004

0

20

40

60

Hour

s/Wee

k

0 10 20 30 40 50 60 70 80 90Age

Male Female

2009

0

20

40

60

Hour

s/Wee

k0 10 20 30 40 50 60 70 80 90

Age

Male Female

2014

NTA+NTTA Production Hours by Sex

29

Page 30: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-10. Gender differences in labor incomein 1999 and 2014

0

200

400

600

800Ja

pane

se Y

en in

10,

000

0 10 20 30 40 50 60 70 80 90Age

1999 2014

Male

0

200

400

600

800

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

1999 2014

Female

Labor Income by Sex: 1999 vs 2014

30

Page 31: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

8-11. Gender differences in unpaid work wagesin 1999 and 2014

0

50

100

150

200Ja

pane

se Y

en in

10,

000

0 10 20 30 40 50 60 70 80 90Age

1999 2014

Male

0

50

100

150

200

Japa

nese

Yen

in 1

0,00

0

0 10 20 30 40 50 60 70 80 90Age

1999 2014

Female

Unpaid work wage by Sex: 1999 vs 2014

31

Page 32: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

9. Conclusion NTA/NTTA as a necessary tool for Japan to monitor & analyze the aging society!

• Focus 1: Socializing elderly care increased total public costs for elderlies, but reduced both medical costs and disabled elderlies

• Focus 2: Free high school tuition and child allowances decreased householdeducation costs for secondary education, while those of post-secondary education increased

• Focus 3: a. There is a large gender gap in paid and unpaid work in Japan both in time and monetary basis.

b. The gender gaps narrow a bit in both paid and unpaid work by age of 40.

32

Page 33: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

10. Future work

• Examination of the shifts or changes in focused points

- Running regression models to control for demographic and socio-

economic components behind the age and sex

33

Page 34: Household Production and Consumption over the Life Cycle ... · Household Production and Consumption over the Life Cycle in Japan: NTA and NTTA summaries by gender from 1999 to 2014

Thank you!

📧📧: [email protected]

34


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