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Increasing National Pension Premium Defaulters and Dropouts in Japan

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  • Suzuki, Wataru
  • Zhou, Yanfei
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    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.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18245/1/pie_dp463.pdf
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    Bibliographic Info

    Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 463.

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    Length: 29 p.
    Date of creation: Jan 2010
    Date of revision:
    Handle: RePEc:hit:piecis:463

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    Related research

    Keywords: Intergenerational inequality; Liquidity constraint; National pension;

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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, Centre for European Policy Studies 6951, Centre for European Policy Studies.

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