TY - JOUR
T1 - Intergenerational earnings mobility and demographic dynamics
T2 - Welfare analysis of an aging Japan
AU - Okamoto, Akira
N1 - Funding Information:
An earlier version of this paper was presented at the International Symposium on Business and Economic Studies held at Okayama University in November in 2019, with the title of “Simulating the Comprehensive Effects of Intergenerational Earnings Mobility in an Aging Japan”. I am grateful for the insightful comments and suggestions of Professors Alan J. Auerbach, Ronald D. Lee, and Emmanuel Saez (The University of California, Berkeley). Additionally, I want to thank Associate Professor Yoshinari Nomura (Okayama University), who helped me in writing the computer program used for the simulations. I also wish to express my appreciation to the Editor-in-Chief of this journal, Professor Clevo Wilson (Queensland University of Technology), and to the anonymous referees, for their helpful comments and suggestions. This research was assisted by a grant from the Abe Fellowship Program administered by the Social Science Research Council in cooperation with and with funds provided by the Japan Foundation Center for Global Partnership. Finally, I also wish to acknowledge the financial support from the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 20K01679).This research was assisted by a grant from the Abe Fellowship Program administered by the Social Science Research Council in cooperation with and with funds provided by the Japan Foundation Center for Global Partnership. The author also has received research grants from the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 20K01679). However, the author declares that he has no conflict of interest.
Funding Information:
An earlier version of this paper was presented at the International Symposium on Business and Economic Studies held at Okayama University in November in 2019, with the title of “Simulating the Comprehensive Effects of Intergenerational Earnings Mobility in an Aging Japan”. I am grateful for the insightful comments and suggestions of Professors Alan J. Auerbach, Ronald D. Lee, and Emmanuel Saez (The University of California, Berkeley). Additionally, I want to thank Associate Professor Yoshinari Nomura (Okayama University), who helped me in writing the computer program used for the simulations. I also wish to express my appreciation to the Editor-in-Chief of this journal, Professor Clevo Wilson (Queensland University of Technology), and to the anonymous referees, for their helpful comments and suggestions. This research was assisted by a grant from the Abe Fellowship Program administered by the Social Science Research Council in cooperation with and with funds provided by the Japan Foundation Center for Global Partnership . Finally, I also wish to acknowledge the financial support from the Ministry of Education, Culture, Sports, Science and Technology in Japan (Grant-in-Aid for Scientific Research (C) No. 20K01679 ).
Publisher Copyright:
© 2022 Economic Society of Australia, Queensland
PY - 2022/6
Y1 - 2022/6
N2 - This paper simulates the effects of intergenerational earnings mobility on individual welfare and future demography in an aging and depopulating Japan. A simulation analysis finds that increased intergenerational mobility across income classes promotes economic growth, and from a long-term perspective, a higher mobility potentially achieves Pareto improvements. In the long run, however, it will hinder economic growth. This is because increased mobility increases the population share of individuals with a higher labor productivity, enhancing economic growth in the initial stage, but because of their lower fertility, an increase in their population ratio negatively effects the total population over time.
AB - This paper simulates the effects of intergenerational earnings mobility on individual welfare and future demography in an aging and depopulating Japan. A simulation analysis finds that increased intergenerational mobility across income classes promotes economic growth, and from a long-term perspective, a higher mobility potentially achieves Pareto improvements. In the long run, however, it will hinder economic growth. This is because increased mobility increases the population share of individuals with a higher labor productivity, enhancing economic growth in the initial stage, but because of their lower fertility, an increase in their population ratio negatively effects the total population over time.
KW - Demographic dynamics
KW - Depopulating and aging societies
KW - Intergenerational earnings mobility
KW - Pareto improvements
KW - Welfare analysis
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U2 - 10.1016/j.eap.2022.01.006
DO - 10.1016/j.eap.2022.01.006
M3 - Article
AN - SCOPUS:85124461458
VL - 74
SP - 76
EP - 104
JO - Economic Analysis and Policy
JF - Economic Analysis and Policy
SN - 0313-5926
ER -
