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Increasing National Pension Premium Defaulters and Dropouts in Japan

Author

Listed:
  • Suzuki Wataru
  • Yanfei Zhou

Abstract

This paper investigates why so many people are premium payment defaulters or dropouts from the national pension system using household-level data from a Japanese Government Survey. The major results can be summarized as follows: (1)the dropout probability of younger cohorts does not differ significantly from that of older cohorts; (2) the unemployed or jobless, individuals with few financial assets, and people who do not own their homes, i.e., borrowing-constrained individuals, are more likely to drop out from the national pension; and, (3) the probability of dropping out from the national pension system declines abruptly at around the age of 36.

Suggested Citation

  • Suzuki Wataru & Yanfei Zhou, 2010. "Increasing National Pension Premium Defaulters and Dropouts in Japan," Gakushuin Economic Papers, Gakushuin University, Faculty of Economics, vol. 47(3), pages 181-198.
    • Handle: RePEc:abc:gakuep:47-3-4
    as

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    File URL: https://www.gakushuin.ac.jp/univ/eco/gakkai/pdf_files/keizai_ronsyuu/contents/contents2006/4703/4703suzuki01/4703suzuki01.pdf
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    References listed on IDEAS

    as
    1. Disney, Richard, 2000. "Crises in Public Pension Programmes in OECD: What Are the Reform Options?," Economic Journal, Royal Economic Society, vol. 110(461), pages 1-23, February.
    2. Michael A. Curme & William E. Even, 1995. "Pension Coverage and Borrowing Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 30(4), pages 701-712.
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    Cited by:

    1. Brender,Anton & Pisani, Florence & Gagna, Emile, 2012. "The Sovereign Debt Crisis: Placing a curb on growth," CEPS Papers 6951, Centre for European Policy Studies.
    2. Wataru Suzuki & Yanfei Zhou, 2013. "Does Pessimism Over Pension Prospect Spur Excess Saving? - Evidence Concerning Close-to-Retirement Households in Japan," Gakushuin Economic Papers, Gakushuin University, Faculty of Economics, vol. 49(4), pages 227-244.

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    More about this item

    Keywords

    intergenerational inequality; liquidity constraint; national pension;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets

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