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A Reappraisal Of The Incidence Of Employer Contributions To Social Security In Japan

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  • JUNYA HAMAAKI
  • YASUSHI IWAMOTO

Abstract

This paper reappraises Tachibanaki and Yokoyama (2008)—an empirical analysis indicating no apparent backward shifting of employer social insurance contributions—by modifying their empirical strategy. First, we control for a spurious positive correlation between wages and employers' contribution rates by trend variables. Second, we utilize a cross‐sectional variation in the contribution rate of workers' compensation insurance. Third, we exclude two industries from our sample to remove sampling errors in wages. Our results indicate that the social insurance burden shifts back onto employees to some extent, contrary to Tachibanaki and Yokoyama (2008). Our finding is consistent with other existing studies.

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  • Junya Hamaaki & Yasushi Iwamoto, 2010. "A Reappraisal Of The Incidence Of Employer Contributions To Social Security In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 61(3), pages 427-441, September.
    • Handle: RePEc:bla:jecrev:v:61:y:2010:i:3:p:427-441
    DOI: 10.1111/j.1468-5876.2009.00494.x
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    Cited by:

    1. Yu, Jingyuan & Zhao, Heyun & Mo, Longjiong, 2023. "Can social insurance contributions boost labor share?—Evidence from China’s social insurance law," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 701-715.
    2. Junya Hamaaki & Yasushi Iwamoto, 2010. "A Reappraisal Of The Incidence Of Employer Contributions To Social Security In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 61(3), pages 427-441, September.
    3. Ángel Melguizo & José González-Páramo, 2013. "Who bears labour taxes and social contributions? A meta-analysis approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(3), pages 247-271, August.
    4. Xufei Zhang & Hongsheng Fang & Lin Guo, 2023. "Corporate Endowment Insurance Fee Reduction and Employee Wages: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 192-222, March.
    5. KODAMA Naomi & YOKOYAMA Izumi, 2017. "Labor Market Impact of Labor Cost Increase without Productivity Gain: A natural experiment from the 2003 social insurance premium reform in Japan," Discussion papers 17093, Research Institute of Economy, Trade and Industry (RIETI).
    6. Saki Sugano & Michio Yuda, 2024. "Beyond the public universal health insurance system: The effect of population aging on insurer’s responses," TUPD Discussion Papers 58, Graduate School of Economics and Management, Tohoku University.
    7. HAMAAKI Junya, 2016. "The Incidence of Health Insurance Costs: Empirical evidence from Japan," Discussion papers 16020, Research Institute of Economy, Trade and Industry (RIETI).
    8. Jin, Gang & Zhang, Jiwen & Ye, Yongwei & Yao, Shiqi & Song, Jingxiang, 2024. "Social insurance law and firm markup in China," Economic Modelling, Elsevier, vol. 132(C).

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