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Long-Term Care in Japan

In: Long-Term Care around the World

Author

Listed:
  • Rong Fu
  • Toshiaki Iizuka
  • Haruko Noguchi

Abstract

Japan, renowned for its significantly aged population, presents a distinctive landscape in elderly care. Notably, there exists no apparent correlation between the economic well-being of the elderly and the limitations they experience in Activities of Daily Living (ADLs) and Instrumental Activities of Daily Living (IADLs). In response to the escalating demand for elderly care, Japan introduced the public Long-Term Care Insurance (LTCI) system in 2000. This comprehensive program offers a wide spectrum of long-term care services, aiming to facilitate aging in place for seniors and alleviate the burdens on informal caregivers. Nevertheless, the LTCI system faces substantial challenges, predominantly related to financial sustainability and a shortage of human resources. Ongoing discussions center on achieving cost-effective service delivery, potential adjustments to premium rates and copayments, especially for individuals with ample financial resources or minimal care needs. Furthermore, debates surround the reduction of the age of eligibility for LTCI, with opposition stemming from intricate financial and structural considerations. Japan grapples with a deficiency of social security contributors and skilled care workers, necessitating endeavors to enhance labor force participation and foster innovation in the long-term care sector. Japan's LTCI system offers invaluable insights for countries grappling with akin demographic and care-related predicaments.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rong Fu & Toshiaki Iizuka & Haruko Noguchi, 2023. "Long-Term Care in Japan," NBER Chapters, in: Long-Term Care around the World, pages 213-250, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14915
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    References listed on IDEAS

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    1. Rong Fu & Haruko Noguchi, 2019. "Moral hazard under zero price policy: evidence from Japanese long-term care claims data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(6), pages 785-799, August.
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    2. Lee, Yong Suk & Iizuka, Toshiaki & Eggleston, Karen, 2025. "Robots and labor in nursing homes," Labour Economics, Elsevier, vol. 92(C).
    3. Nakabayashi, Masaki, 2025. "Legislating filial obligations: Property rights and filial piety in shogunate Japan," Journal of Asian Economics, Elsevier, vol. 98(C).
    4. Rong Fu & Dung Duc Le & Yoko Ibuka, 2025. "The impact of reducing formal care benefits on caregivers’ well-being: evidence from Japan," Review of Economics of the Household, Springer, vol. 23(4), pages 1221-1249, December.
    5. Charles Yuji Horioka & Emin Gahramanov & Xueli Tang, 2025. "On the impact of long-term care insurance on the behavior of parents and children: theory and evidence on Japan," Review of Economics of the Household, Springer, vol. 23(4), pages 1155-1187, December.
    6. Lee, Dongkyu & Kim, Soojung & Kwon, Soonman & Yun, Sunghun & Kanda, Mikiko & Lee, Siwon & Sutton, Nicole & Ong, Paul & Inder, Andy, 2025. "Are long-term care systems aligned with person-centered integrated care? Evidence from the Western Pacific," Health Policy, Elsevier, vol. 162(C).

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other

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