OECD Economic Surveys: Japan

Basic Statistics of Japan, 2017
Executive summary
Key policy insights
	Output growth has peaked, but is projected to continue at a moderate pace
	Fiscal policy: short-term challenges and threats to long-run fiscal sustainability
		The new fiscal targets and preparing for the 2019 tax hike
		Ensuring long-run fiscal sustainability
	Monetary policy and the financial sector
		Recent developments in monetary policy
		The financial sector: strong at present but emerging concerns
	Sustaining labour inputs in the face of population ageing
	Narrowing the productivity gap with leading OECD countries
		Improving corporate governance in Japan
			Addressing corruption and other serious corporate offences
		Improving the performance of SMEs
	Green growth policies to improve well-being and promote sustainable growth
		More ambitious climate policy would have many benefits
			Policies to reach 2030 targets rely on higher efficiency as well as expanding nuclear energy and renewables
			Planned coal-fired power plants may lock in high carbon infrastructure
			Investing more in renewables can boost Japan’s competitiveness
		Japan needs to reform energy markets further to make the most of renewables
		The scope for increasing carbon taxation is large
	Bibliography
		Annex 1.A. Osaka: meeting the challenges of sustaining growth and providing social services in the face of population ageing
		Annex 1.B. Progress in structural reform
Annex 1.B. Progress in structural reform
Chapter 1.  Labour market reform to cope with a shrinking and ageing population
	Extending working lives
		A reversal of falling employment rates for older persons since 2000
		Japan’s traditional labour market practices
		Policies that have helped to lengthen working lives
		The skills of older workers
		Reforms to extend the careers of older persons
			Abolishing mandatory retirement
			Raising the pension eligibility age and reforming the pension system
			Flattening the seniority wage curve
			Maintaining and improving skills requires life-long learning in the digital age
			Providing effective job placement services
			Improving working conditions
	Reducing obstacles to the employment of women
		Improving work-life balance
		Providing high-quality, affordable childcare
		Ensuring that women do not have to leave their jobs to care for elderly relatives
		Reforming the tax system to remove disincentives to work for second earners
		Enhancing women’s role by reducing discrimination
	Making greater use of foreign workers
	Promoting inclusive growth by breaking down labour market dualism
	Bibliography
Chapter 2.  Meeting fiscal challenges in a rapidly ageing society
	Ensuring fiscal sustainability in Japan requires significant fiscal consolidation
		Japan’s new fiscal consolidation plan
		A path to fiscal sustainability
	Policies to control social spending while providing quality health and long-term care
		Factors driving health and long-term care spending
		More efficient use of healthcare resources
			Reducing the number of hospital beds and improving their allocation
			Reducing the high level of spending on pharmaceuticals
			Limiting spending on outpatient care
			Long-term care insurance
	Ensuring adequate income for the elderly
		Pension reform
		Minimum income security in the rapidly ageing society
	Policies to ensure sustainability of local government services
		Improving the efficiency of local government administration
		Ensuring sustainability of infrastructure investment and maintenance
		Promoting compact cities to achieve economic, environmental and social benefits
		Reinforcing the institutional framework for local land-use
	Raising revenue and removing disincentives to employment
		Further hikes in the consumption tax are needed
		Broadening the personal income tax base and reducing labour supply distortions
		Corporate income and capital taxation to promote inclusive growth
		Increasing the use of environmental taxation
	Bibliography
		Annex 2.1. Long-term debt sustainability analysis