ESRI Discussion Paper Series No.281
Intergenerational Inequality Caused by the Social Security System

Wataru Suzuki
Gakushuin University
Minoru Masujima
Economic and Social Research Institute, Cabinet Office
Kosuke Shiraishi
Mitsubishi Research Institute
Akihiro Morishige
Mitsubishi Research Institute

The full text is written in Japanese.

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.

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