Showing posts with label birthrate. Show all posts
Showing posts with label birthrate. Show all posts

Wednesday, November 25, 2015

What Womenomics Can Achieve

I have on-gain/off-again Twitter wars with the opinionated Professor Noah Smith of Stony Brook University on subjects Japanese. In a recent exchange I lost patience with the good doctor, for which I am only slightly sorry.

Dr. Smith asked a simple question: why did Japanese women's fertility (number of births per woman) fall when the level of participation of Japanese women in the workforce was still low? To which I offered a simple answer: because age of first marriage rose. (Link)

In the economics explanation women have fewer children based upon calculations marginal utility and opportunity cost. While in agricultural societies children represent potential increases in labor force and output, in industrial and post-industrial societies children represent zero increase in output. Furthermore, for the woman in developed societies the birth of each child represents an economic subtraction, time and energy that could have been spent furthering their careers or increasing their take-home pay.

In Japan's case, however, declines in fertility preceded and exceeded possibilities of tradeoff between work and childbirth.

Hence my answer -- that in East Asia behavioral effects of calculations of marginal utility and opportunity cost are small compared to the effects on fertility of later marriage and the social stigma/economic catastrophe of out-of-wedlock birth. In contradistinction to the economic explanation, married women in Japan are having children at the same rate they always have -- lost economic opportunity turns out to be a feeble predictor of Japanese fertility.

The policy implications of this for the second of the Abe Administration's New Three Arrows -- raising the number of births from 1.4 per woman to 1.8 -- are clear. More day care, including day care centers inside corporate buildings (Link- J)? Largely irrelevant for fertility. Relevant for the workforce participation rate? Sure, flattening the infamous "M Curve" (Link). But largely irrelevant for fertility.

To raise fertility, the government can:

1) Convince Japanese to marry in their early twenties like they did in the 1970s.

2) Eliminate the social stigma and economic consequences of out-of-wedlock birth.

3) Increase the rate at which women above 35 years of age have children or extend the window of fertility by a delay in the onset of menopause, or

4) A combination of all three.

Good luck with the above.

But don't take my word for it. Check out the amazing slide presentation of Saito Jun of the Japan Center for Economic Research on Japan's capacity to overcome its lower fertility and shrinking population (Link). The whole (expletive deleted) argument over Japan's demographic limits to growth is laid out in detail.

Those with a little more time can check out the Tokyo on Fire videos for discussions of these matters. Like this one perhaps.

Class dismissed.


Later - There are many, many debates where I am rooting for Dr. Smith, such as the one he is currently having with John Cochrane on inter-generational fairness. (Link)


Tuesday, July 02, 2013

She Skates Her Own Way



Doing whatever it is her way has been figure skater Ando Miki's trademark. Whether it is in training, endorsements, makeup, outfits and living arrangements, she has always raised eyebrows and pursed lips in this sacrificial discipline- and skating-mad nation.

Last night, however, Ando topped all her previous efforts at blowing the nation's fuses. In an interview on TV Asahi's flagship evening news broadcast News Station the two-time world champion revealed that she gave birth to a little girl in April...and she demurred on revealing the identity of the child's father. (Link - J)

Single motherhood, much less single motherhood among athletes, is not how one goes about the process of reproduction in this blessed land. A rite of passage of women glitterati in their 20s is indeed the dekichatta kekkon, the sudden announcement by a starlet of a wedding to the biological father of her fetus. That these marriages inevitably -- or pretty much inevitably -- dissolve a few years later, too often in ways deleterious to the child's well-being, is an afterthought, if that.

There are good institutional reasons for marrying the sperm component provider of an infant prior to that infant's birth. Having no father on the family registry is a permanent, indelible stigma -- an excuse for any admissions office, personnel department or marriage go-between to toss out your child's application without reading it. Single motherhood is therefore almost non-existent.

There are good promotional reasons for the day laborers of the sports-and-entertainment complex to accede to sham, shotgun marriages.  Fantasy images of wedding cakes, reception and the wearing of white are far easier to sell than "Yes, I had unprotected sex with a male I am not married to and who he is and what I think of him are none of your Amaterasu-damned business. If you are looking for someone capable of justifying or making you forget your own messed up marriage, I am not that person."

As for what childbirth means for Ando's calling, which is figure skating, certainly having a child this year ends all possibility of her competing for Japan at the 2014 Sochi Olympics.

Uh, maybe not. The image posted (altered, the original can be found here) is of Ando skating in an ice show on June 28. After having given birth in April.

Yow.

In her nonchalant and after-the-fact announcement on becoming a mother, Ando once again pips Asada Mao, the country's much-beloved and terribly enervated ice queen (Link). Asada has announced that she will retire after Sochi, one of her reasons being a strong desire to become a mother.

It seems one doesn't have to give up one role for the other, Mao-chan.


Later - Lest it be forgotten, Ando was the first (and to my knowledge the only) woman to ever land a quadruple jump in international individual competition.

Thursday, March 21, 2013

Ya Gotta Wish 'Em Good Luck

The Abe Government is purportedly going to have a go at solving one the most vexing problems of the last 40 years: how to entice Japanese men and women to marry at younger ages and reproduce more frequently.
Govt to step up aid to lift low birthrate / Will help more people marry, have children

The Yomiuri Shimbun

In a bid to boost the nation's chronically low birthrate, the government will provide more support to encourage people to get married and have children, it was learned Tuesday.

The support will include assistance in finding marriage partners and homes, and in having and raising children.

The government will establish an expert task force next Wednesday that will work out concrete measures by May. These steps will be included in the government's basic policy on economic and fiscal reforms, which it plans to compile in June.

Among them, the government will implement measures that are urgently needed, starting in fiscal 2014, a government source said.

The task force will be chaired by Masako Mori, state minister for measures for the declining birthrate, and will comprise about 20 experts, including scholars, doctors, heads of local governments and corporate managers.

Three bills designed to support childbirth and child-rearing were passed into law last August. The bills center on improving child care services and preschool education.

However, the low birthrate is also the result of many people remaining single or delaying marriage, as well as their anxiety about having and raising children. The task force will discuss how such concerns can be dispelled...

(Link)

The article reveals a number of interesting proposals. It also reveals some silly-sounding ones, such as increasing subsidies to local government programs helping residents find spouses -- programs that have had little measurable impact on marriage numbers so far.

The national government, however, is sailing against a global tide (Link). It could go full force pro-natalist, promulgating such measures as the ban on abortions Liberal Democratic Party General Council chair Noda Seiko (whose own desire to give birth led her to make icy bioethical decisions) seems to have proposed last month (Noda has made statements in support of such a ban in the past - Link - J). Without suppressing civil liberties or blowing out the budget (income tax holidays for child bearing, for example), the final package of government measures, none of which is likely to be tested for effectiveness prior to promulgation, will likely be more than just a lot of fumbling around in the dark.

Monday, January 07, 2013

A Spot Perhaps Not So Sweet

I heard a version of Jesper Koll's Japan bull speech

(Link)

in December.

Here is my biggest problem with it.

At 4:34 in the video, Koll shows a graph of the wages and bonuses a typical salaried worker receives over his or her lifetime. Wages remain low over the first 15 years of work, then rise rapidly, reach a peak at around 55 years of age, whereupon they decline until retirement.

According to Koll, the passage of the "Mick Jagger" generation (Jagger was born in 1943) from its wage peak and into wage decline and retirement accounts for 80% of observed deflation. One has to assume he is talking about consumer prices deflation. He is clearly not talking about deflation in real estate -- that he accounts for differently. He does not even mention deflation in equities, an interesting choice given his day job.

According to Koll, the massive deflationary pressure from declining wages and bonuses will reverse as the children of the Mick Jagger generation enter their high wage post-40 years of age period.

Ummm, cannot say that I agree.

On the first of this month, the Ministry of Health, Labour and Welfare released this graph.

Let us look first at the top solid line.


[Source]

In 1949, births topped out at a never-to-be-seen again 2,678,792. They fell precipitously, bottoming out at 1,566,713 in 1957 -- a 42% drop in just 12 years' time. Births recovered as the Mick Jagger generation began having children, peaking at 2,091,983 in 1973 (note - half of this generation have already entered the stage when their earnings accelerate). This new peak of births is 32% smaller than the 1949 peak.

After 1973, births fell slightly less precipitously than after 1949, hitting 1,431,577 in 1985 -- a 12 year fall of 32%. However, unlike in 1957, births have never recovered. Births have fallen slowly but steadily, declining 38% over the last 27 years, falling below the number of deaths (thick dotted line) in 2007.

So what does all this mean?

a) the numerically largest generation ever is leaving the workforce.

b) a numerically large generation is entering its high-wage period. However, their numbers are only around 75% of the generation whose total earning power they are supposed to be replacing.

c) there are dramatically fewer children and young people to serve as consumers and workers. Good for them on an individual level as they will (in theory!) be able to bid up wages and demand lower prices for goods. Bad for the country in terms of aggregate spending.

d) With births below replacement level, total population -- i.e., total consumption -- is going down and at an accelerating rate, the number of deaths over birth rising from 18,516 in 2007 to 210,000 last year.

Koll is probably right about a boom coming on. However, it is for the folks selling investments and savings vehicles to the echo generation. That generation has to plan for lifespans of 90 years and for taking care of elderly parents for two decades before falling themselves into decrepitude -- all with little help from whatever survives of the national pension system.

A surge in spending due to rising wages and bonuses? The birth and death numbers do not offer solace.

And no no one in the Diet is losing much sleep over the implications of the above graph. To borrow a simile from Chris Rock, statistics and macro are like kryptonite to this blessed land's parliamentarians.

Monday, December 17, 2012

Notes On Population, Women And Work

The New York Times has just published an essay blissful in its lack of context or statistical rigor (Link). It seems rural Japan is getting depopulated, young persons are leaving for the cities and the median age is getting perilously high.

As is the case in North Dakota. As it is in rural just about everywhere in the industrialized world. And not a few countries of the not-so-industrial world too.

As for the childcare availability problem mentioned which is somehow depressing fertility, the government has been making headway on this problem every year, cutting down the number of children on waiting lists for public day care centers despite massive year-on-year increases in demand (Link). The government's buildout is indeed hammering private daycare providers. In the TMD, the move by private railways, with their huge landholdings, into the daycare business likely to drive the last of the small independent providers out of business.

The interplay in between attitudes and reality regarding women, childbearing and work is complicated, and growing more so, rather than less. The Cabinet Office's roughly triennial "Survey on Social Participation of Men and Women" (Danjo kyodo sanka shakai in kan suru yoron chosa) released today finds a major reversal in the long-term trend as regards the statement, "The husband should be out working; the wife should taking care of the home." From 1992, the year of the first of these surveys, to 2009, the percentage of respondents agreeing with that statement declined with every survey. However, in the 2012 survey, the percentage of respondent agreeing with the statement jumped -- up to a level not seen in 15 years (Link - J).

The shocker is the shift in the attitudes of the 20-29 age cohort since the 2009 survey. Whereas the youngest cohort was the age cohort the least likely to agree with the statement in 2009 (37.3% as compared to all ages figure of 41.7%) in 2012 it comes in second only to the cohorts over 60 years of age (50.0% as compared to the all ages figure of 51.6%). In both cases, the 50-59 age cohort has been the least likely to agree the statement (Link -J)

Amaterasu bless you, you children of the 1960s.

The denial of economic reality by the youngest age cohort is repeated in the responses to the statement "It is all right for women to continue working even if they have children." In between 2009 and 2012, the percentage of respondents in the 20-29 age cohorts agreeing with the statement fell from 46.4% to 39.1%, even as the figures for all cohorts moved in the opposite direction (45.9% in 2009 and 47.5% in 2012).

Looks like the echo boomers are a little bit spoiled. Suffice it to say that it is harder to wake up if you keep your eyes closed.

Sunday, May 13, 2012

Of The DPJ And Children - Special Mother's Day Edition

In my post of yesterday, I remarked that "(t)ackling the birth dearth has been of tertiary interest for the DPJ leadership -- which has been expending far more of its political capital on solving the budget and pension gaps through raising the level of taxation or goosing economic growth rather than raising the number of taxpayers." (Link)

While this is true, one small caveat is in order. While the proposed rise in the consumption tax to 10% (part of the bill dump the Democratic Party of Japan unloaded on upon the Diet this week) is slated to be used primarily to put the fiscal houses of the pension, medical and eldercare systems in some sort of order, a slice will be reserved for programs to increase the birthrate. According to the May 11 print edition of the Tokyo Shimbun, if the raising of the tax rate to 10% nets the predicted 13.5 trillion extra yen for the government, then 700 billion -- 5.2% of the total -- will be set aside for programs supporting the birth and raising of children.

It is to be presumed that the extra revenues set aside for measures to raise the birthrate (shoshika taisaku) will in part restore cutbacks in aid for families with children (kodomo teate) the DPJ promised in its 2009 election manifesto -- aid that the DPJ first had to halve because of budgetary constraints, then cut further and reduced to a needs-based system (jido teate) largely indistinguishable from the jido teate system in place under LDP rule (in an fit of pettiness, the LDP and the New Komeito made their votes for the new truncated system contingent on the revival of the jido teate name).

However, no one knows for certain what the DPJ intends to do with the 700 billion, if that amount can even be raised. No bill is in the works. No plan has been announced. All we have to go on is Prime Minister Noda Yoshihiko's response to a question posed to him on Thursday by DPJ member Izumi Kenta:

"Througth the Comprehensive Reform, investment in the future will be strengthened. [The Comprehensive Reform] has a goal of bringing into being a social safety net responding to the needs of all generations. As for the revenues raised through the consumption tax to be devoted to children and childrearing, I believe this means that social safety for life's first half will be strengthened." (Link - J)

Did you get that? Do not be alarmed: it was designed to baffle. Luckily for Noda, he was being questioned by a member of his own party. An opposition member would have snapped, "Excuse me, but what the blazes does your answer mean?"

The setting aside of a portion of the revenues raised by the elevated consumption tax for children and childrearing -- whatever the plan for those revenues might be -- is not the only fundamental reform the DPJ has proposed for government programs for children. In order to implement a reform I am not sure anyone asked for and I do not think anyone can explain, the government on Thursday presented to the Diet three bills that together will unify Japan's bifurcated pre-school childcare systems.

That Japan has two systems of childcare run by two different ministries may look odd but is eminently rational. The day care system (hoikuen) is run by the Ministry of Health, Labour and Welfare. It is focused on the "Labour" part of the ministry's mandate -- that is providing childcare for mothers who work. It takes in children as young as two months of age, looks after them from around 7:30 a.m. to 6:15 p.m. (actual operation hours vary according to the center and extended hours are available, for an extra fee).

The kindergarten system (yochien) is run by the Ministry of Education. It is a pre-school, primarily the children of mothers who do not work or who work only part-time. The hours are limited, with the children being taken in at around 9:00 am and let out in the middle of the afternoon. It takes in children once they are three years of age. Its nominal focus is on education, unsurprising given the ministry that runs it, which means preparing the children for the habitudes of elementary school.

Aside from the cost aspect of having two seperate bureaucracies running parallel systems, there is little if any impetus for having the two systems merge. There is a hope that having yochien keeping hoikuen hours will cut down on the backlog of children on waiting lists to get into hoikuen. However, since the staff backgrounds and physical layouts of hoikuen are very different from those of yochien, the unification will lead to a period of confusion as new staff are trained or old staff retrained and centers have to be retrofitted or rebuilt.

Besides, as page 9 of the most recent Ministry of Health, Labour and Welfare report on day care centers shows, the problems of insufficient day care center spaces is a relatively small and extremely localized phenomenon. Only 25,556 children are on waiting lists to get into day care centers, a miniscule number compared the national population and to to the hundreds of thousands on the waiting lists in the 1990s, before the government went on a day care center opening binge. Furthermore, as the red dot shows, the problem of insufficient spaces is concentrated inside the Tokyo Metropolitan District, where 31% of the children on waiting lists live. Twenty-six of the 47 prefectures have fewer than 100 children on waiting lists.

Overturning the apple cart because the TMD is a hard place to build day care centers (here is one area where Richard Katz's great bugaboo, the imposition of the tax rate for on bare land on agricultural land located inside urban areas, would result in a net social good. Otherwise, the imposition of taxes would be an ecological and psychological disaster, the urban farms providing the only green spaces and open sky in many neighborhoods) seems, on the face of it, reckless beyond reckoning.

The systems, bifurcated as they are, largely work. There is a possibility, but no one has the statistics to back it up, that the conversion of the abbreviated day yochien to full-day hoikuen will encourage more women to take full time jobs. There is also a possibility -- but again without any statistical evidence -- that the education focus of the yochien will somehow improve the atmosphere of hoikuen, making them better at preparing children for school. Whether hoikuen children perform less well in school, all other factors being equal, than yochien children, remains unproven. Indeed, given that hoikuen children have been living much of their first six years of life in group settings with strict schedules and egalitarian values, they would just as likely to do better in school environments than children raised primarily by their mothers.

With that, a Happy Mother's Day to you all.


Later - Credit where credit is due: the Liberal Democratic Party, for all its faults and whatever its reasons, is opposed to the DPJ plan for a merger of the two public childcare systems -- which has all the appearances of a reform for reform's sake.

Saturday, May 12, 2012

The X-Y Axes of Stupid: Children and Childcare

There days one wonders, "Oh, why fight it? Why not just sit back and be stupid, like seemingly nearly all those in positions of wealth, power and influence?"

Today is one of those days.

In a Children's Day (May 5) bit of thought-provoking whimsy, researchers at Tohoku University posted a Zero Hour time clock (J). Based upon the rate of decline in the number of children in between April of 2011 and April of 2012 -- the researchers provide the URLs of the relevant government populations statistics pages -- the clocks tick off both the number of children in Japan and the number of days until, if the decline in between April 2011 and April 2012 were extended indefinitely, there would be but a single child left in Japan.

The press release on the workings of the time clock (J) by team leader and Graduate School of Economics and Management Professor Yoshida Hiroshi explains that he copied his idea from the famous U.S. debt clock. He also makes clear that the purpose of the clock is to stimulate discussion of 1) what the current state of the decline in the number of children means, and 2) what are the consequences if declines continue in the future.

That the whole exercise is not an academic but a polemic exercise is apparent from the press release. It is a rush job, with typos. For instance, in the paragraph explaining the goals of the clock, the text should say "apiiru" not "piiru." There is no such word as "piiru."

Of course, the writers and editors news organizations would never, ever take this bit of fun and blow it up into an an actual scientific enterprise. Oh no, they would never do that:

3011 to see last child in Japan: population clock
Jiji, Kyodo

SENDAI — Japan will no longer have children under the age of 15 in 999 years, a group of researchers at Tohoku University Graduate School has estimated.

The team, led by professor Hiroshi Yoshida, developed a child population clock that displays an estimated number of children at any moment based on past percentages of decline. The clock was made available on the university's website Thursday.

The team used a 2011-2012 percentage change in the number of children that was released by the Ministry of Internal Affairs and Communications on April 1. The number of children aged under 15 fell to 16.6 million in 2012 from 16.9 million in 2011.

The clock calculates the estimated number of children at present and counts down to the last child, based on the assumption that the number of children is expected to continue falling.

Japan's child population drops by one every 100 seconds, according to the clock. As a result, there will be no kids on May 18, 3011...

(Link)
AAAaaaaarggghhhhh!

Of course, this version of the story has gone both viral and mainstream, at least among the publications assuming their readership have sub-bonobo IQ (and if any of readers out there are 100% bonobos, please accept my apologies for associating you with these organizations).

(Search results)

Now this is not to say that the decline of the birthrate has not been one of the social policy areas where the government, both under Liberal Democratic Party and Democratic Party of Japan leadership, has run up against a brick wall. The LDP in the 1990s went on a day care center-building binge that continues to this day -- the green line in Figure 1 of this 2011 Ministry of Health, Labour and Welfare report.

[By the way, check out the map on page 9 of the report. It shows that of all the children awaiting placement in day care centers, 31% live in the Tokyo Metropolitan District. Add in Kanagawa Prefecture, and percentage rises to 43%. And nine prefectures have zero children on waiting lists.

Can we please now decently bury the "Japan lacks sufficient childcare for working mothers" canard?]

As for the DPJ, it promised, though it in the end has not been able to deliver, direct financial support to all families with children. The child allowance (kodomo teate) was potentially good social policy, as it certainly would have made it possible for lower and middle income couples to have children earlier and in greater numbers. However, the DPJ simultaneously sold the child allowance as an economic stimulus measure, which was dumb, as families, even though receiving only half of the monthly payments promised, still managed to save half the amount dispensed. Of course, financial planners writing in women's magazines advised readers to put all the child allowance into savings.

[If we are to take Shakespeare as our guide (E), the agenda for the DPJ should have been: "The first thing we do, let's kill all the financial planners."]

Tackling the birth dearth has been of tertiary interest for the DPJ leadership -- which has been expending far more of its political capital on solving the budget and pension gaps through raising the level of taxation or goosing economic growth rather than raising the number of taxpayers. Indeed, the "measures for for the declining birthrate" portfolio has become the hot potato of cabinet jobs. A humiliating nine different ministers have held the portfolio since a DPJ-led coalition took power in September 2009 (J) -- a rate of turnover neared only by the hard right dream portfolio of Minister for the DPRK Abductees Issue (six different ministers since the takeover).

Despite failure of the government to find a game plan for reversing the decline in the birthrate, the Japanese people -- whatever that means in genotype terms -- is not going extinct. The Japanese language might go extinct* -- look at at the state of Manchu one century after the fall of the Qing Dynasty. However, writing about the Japanese people going extinct based on the extrapolation of the rate of decline between April 2011 and April 2012 -- not a particular cheerful and hope-filled year, if one may say so -- that deserves a spanking.

-------------------------------
* Mori Arinori (E) thought it a potentially worthwhile goal -- just one of the brainstorms that got folks angry enough to kill him on the morning of Constitution Day in 1889.

Friday, April 20, 2012

Raising Children In the Land Of the Rising Sun

Dear me, the threatened longer CFR version of this New York Times op-ed looks as though it is going to be a total, alarmist, misleading waste of time.
Mind the Baby Gap
by Steven Philip Kramer

Although overpopulation plagues much of the developing world, many developed societies are now suffering from the opposite problem: birthrates so low that each generation is smaller than the previous one. Much of southern and eastern Europe, as well as Austria, Germany, Russia and the developed nations of Southeast Asia, have alarmingly low fertility rates, with women having, on average, fewer than 1.5 children each, well below the replacement level.

At the same time, life expectancies in those places have reached record highs. As a result, the dependency ratio — the ratio of the working population to the nonworking population — has become increasingly unfavorable, and it is projected to get more so. Making matters worse is that economic growth gets harder to achieve as workers age and their ranks dwindle; aging societies will have a tough time succeeding in an era of rapid technological change.

Population decline poses a danger to the developed world. Yet there is nothing inevitable about it. History shows that governments can raise birthrates close to replacement levels if they adopt the right policies. France and Sweden, for example, have crafted thoughtful, comprehensive and consistent policy responses that have largely reversed their declining birthrates over the long run.

France was the first country to experience a declining birthrate in the 19th century. French leaders blamed the country’s defeat in 1940 on its stagnating demographic, economic and social development. If France was to regain its status, it needed a new dynamism — more social justice, a stronger economy and faster population growth. So France tried to plan itself out of industrial underdevelopment and demographic decay, and it did so through, above all, a generous program of financial support for families with children.

Sweden suffered from extremely low birthrates in the 1930s. When the Social Democrats came to power at the height of the Great Depression, one of their economic strategists was Gunnar Myrdal, who in 1934, with his wife Alva, wrote a best-selling book on the population crisis. It argued that if Sweden was to boost its birthrates, women had to be able to both raise children and have careers — a revolutionary idea at the time...

(
Link)
Especially since the very same paper published the below op-ed five weeks ago.
The Fertility Implosion
by David Brooks

When you look at pictures from the Arab spring, you see these gigantic crowds of young men, and it confirms the impression that the Muslim Middle East has a gigantic youth bulge — hundreds of millions of young people with little to do. But that view is becoming obsolete. As Nicholas Eberstadt and Apoorva Shah of the American Enterprise Institute point out, over the past three decades, the Arab world has undergone a little noticed demographic implosion. Arab adults are having many fewer kids.

Usually, high religious observance and low income go along with high birthrates. But, according to the United States Census Bureau, Iran now has a similar birth rate to New England — which is the least fertile region in the U.S.

The speed of the change is breathtaking. A woman in Oman today has 5.6 fewer babies than a woman in Oman 30 years ago. Morocco, Syria and Saudi Arabia have seen fertility-rate declines of nearly 60 percent, and in Iran it’s more than 70 percent. These are among the fastest declines in recorded history.

The Iranian regime is aware of how the rapidly aging population and the lack of young people entering the work force could lead to long-term decline. But there’s not much they have been able to do about it. Maybe Iranians are pessimistic about the future. Maybe Iranian parents just want smaller families.

As Eberstadt is careful to note, demographics is not necessarily destiny. You can have fast economic development with low fertility or high fertility (South Korea and Taiwan did it a few decades ago). But, over the long term, it’s better to have a growing work force, not one that’s shrinking compared with the number of retirees.

If you look around the world, you see many other nations facing demographic headwinds. If the 20th century was the century of the population explosion, the 21st century, as Eberstadt notes, is looking like the century of the fertility implosion...

(
Link)
Each country has its unique combination of reasons for its fertility collapse. A willy-nilly reproduction (pun unintended) of the French or the Swedish models, without taking into account the the cultural, institutional, economic, immigration policy, ethnic profile and country size and location aspects bracketing those models, is playing with fire.

In this blessed land, the government has experimented with codifying generous leave rights for women and now men. It conducted a successful crash program to build day care centers in the 1990s (contrary to the conventional wisdom, waiting lists for day care center spaces are an extremely limited and localized phenomenon). As a part of an economic stimulus program, it has experimented with direct payments of subsidies to parents of children, without means testing (50% of which ended up, due to the law of unintended consequences and personal asset management advice printed in women's magazines, in bank savings accounts -- precisely where the government did not want its stimulus money to go).

The one salient fact that has seemingly never sunk into policy makers heads is that married women now are having children at the same rate they were four decades ago. The difference is that women are marrying in their thirties, meaning that their window of fertility is smaller. The issue is getting men and women to marry young, either by setting up their own households or by living with their inlaws in large houses.

If the government can also find ways of making the finding of jobs more secure -- which means encouraging flexible employment practices and the eradication of the bias against who choose or must suffer job mobility -- above and beyond the considerable efforts it has tried to make, then the birthrate "crisis" would ease.

Due to what has gone on over the last 30 years, this blessed land's population is set to drop no matter what -- last year's drop of more than a quarter of a million citizens serving as a wake up call of dramatic falls lying ahead (E). Making young people feel safe about marrying young would, however, ease the decline.

Thursday, November 12, 2009

This Land, This Earth, These Words Unspoken


"Hatoyama-san. I am sorry. I come without a fixed plan to reduce America's carbon emissions, thus abdicating my country's natural role as the leader in the fight against anthropogenic climate change, the greatest threat facing us all. I have no plan to free our countries from petroleum dependency, thus guaranteeing that we will continue to bankroll the petroleum tyrannies which have grown in number over the last decade, swallowing up once-promising elected democracies.

I come asking for your help in regards Iran and Afghanistan whilst saying in nothing in public about America's role in the creation of the problems posed by these states. I will not openly recognize the unfairness of pressing allies to help out in reining in Iran when it was the CIA that overthrew the elected government of Iran, installing a puppet monarch -- or in pacifying Afghanistan, when it was the U.S. that armed and arranged for the training of the anti-Soviet forces that were to transmogrify into Al Qaeda and the Taliban.

I am not going to apologize, of course, for my country's having seemingly learned nothing from Japan's real estate/equity markets bubble. I certainly will not apologize for Americans having harangued the Japanese government for failing to to prevent the Bubble or for not responding with proper speed and sufficient scale to stop an overall economic collapse. I will also not pay tribute to the Japanese policy makers who managed to keep unemployment in Japan low during the worst parts of the so-called Lost Decade when I and my team have allowed unemployment to soar past 10% in just one year.

I am also sorry that I will be making oblique, negative references to your proposition that Japan needs to relocate its central foreign policy axis to a point in between China and the United States without ever mentioning the shadow cast on U.S.-China relations by the immense store of U.S. Treasuries and other dollar assets China has piled up over the last six years, effectively bankrolling America's wars, tax cuts and fiscal profligacy.

As a Pacific islander, I should express a greater sympathy for the burdens placed by both your government and mine on the people of Okinawa. I will not say anything, however, that could annoy my military commanders or interfere with their schedules. "

"Dear Obama-san. I too am sorry.

I came into power without actually having thought through what my goals are. I do have a long list of things-to-do in my party's manifesto, much of which I have a real chance of enacting due to the immense parliamentary majority I enjoy. However, if you ask me what the five main goals are for my tenure, I would respond with a quintet of platitudes.

My country has a crashing birth rate, is deeply in debt and faces a rapidly growing army of retirees. I have no idea how to respond to these worsening problems. Enacting the policies listed my party's manifesto will likely exacerbate my country's already staggering fiscal crisis.

I will promise you all kinds of international economic contributions in lieu of sending Japanese into harm's way. There is no realistic means, however, for me to finance all of my pledges to you and keep my promises to my voters. You do not need to guess who it is I will shortchange.

As the father myself and in honor of your two young daughters, I should pledge that Japan will do its utmost to join with the international community in wiping out the twin scourges of child pornography and child abduction. I will offer vague promises of action, maybe.

You have come so far and I have nothing of substance to give you. I wish that I could tell you that will be around for a long time, so you can rely on me to make up later for having nothing for you now. However, I hired an idiot as the accountant for my political funding organization, who then engaged in activities that I have, in Diet session, said look criminal to me. Given Japanese law I am likely to lose my premiership and might even be forced to give up my Diet seat."

"We should apologize to both our peoples for pretending that there is much of anything we can do about the threat posed by North Korea except engaging in humiliating and pointless on-off negotiations, continuously refining missile defense and maintaining the threat of a nuclear attack on North Korea, should the least thing happen to Japan."

"We should. But we won't, will we?"

"No, because saying so would expose the inconsistency between our stated faith in dialogue, our wishes for a world free of nuclear weapons and our peoples' desires for closure -- and the dogged presence in North Korea of a dirt-poor regime insensitive to anything but the threat of ultimate annihilation."

"But surely the people of our countries can understand the necessity of being inconsistent?"

"Yours probably can but not mine."

Image: Kohauchiwa kaede (Acer sieboldianum) and kuromatsu (Pinus thunbergii) on Mutsuishiyama, Okutama Township, Tokyo Metropolitan District. November 3, 2007. Image credit: MTC.

Tuesday, May 20, 2008

Light Blue for Boys, Pink for Girls, Yellow for Flashing Warning Lights

Chihō bunken - "decentralization"-- the verbal smokescreen deployed by those advocating pseudo-reforms that eviscerate citizens services while failing to increase transparency or stamp out fraud and waste. See "shell game" and "horse manure."

According to today's Yomiuri Shimbun, the Ministry of Health, Welfare and Labour is considering relaxing national minimal standards on the facilities and grounds for day care centers (hoikuen) in favor of allowing local municipalities to set their own standards.

Uh-oh. A problem nobody thought existed is about to be solved by the tempting local municipalities to skimp on childcare facilities.

Niwa Uchirō, the chairman of general trading giant Itochū and the Chairman of the Commission for for the Promotion of Government Decentralization (Chihō Bunken Kaikaku Suishin Iinkai) presents the planned relaxation of national standards of the sizes of rooms and playgrounds as responding to the regional (environmental?) variation:

"Having a single standard from Hokkaidō to Okinawa is bizarre. There is no scientific basis for it."

But Niwa-san, the proposed revision is not about the maximum size of facilities, of the area of open space, indoors and outdoors, per child. If we were talking about taking advantage of regional differences, the ability to expand the beyond the minimum grounds would make sense--as land is abundant in all but a few areas.

The Yomiuri correspondent dutifully repeats the canard that this sudden plan to hand off to the local municipalities the ability to set the standards for child care facilities is necessary because relaxing the standards would make it possible to enroll more children in non-standard facilities, eliminating need for children to be on waiting lists.

In the example in the Yomiuri article, municipalities with children on waiting lists but insufficient open land to build a center to national standards could convert a floor of an office building near a train station into a day care center. Impoverished rural communities could convert old, unused elementary or middle schools into day care centers.

Now color me stupid, but this slide in the Ministry's own March 2008 Powerpoint presentation on Japan's day care facilities indicates to me that the Commission seems a little too eager to fulfill its mandate of promoting decentralization.

Slide #8 tells me the number of children on waiting lists to get into day care centers is 17,926.

You read that right: fewer than 18,000 children are on a waiting lists nationwide. At the same time, some 2.11 million children are currently enrolled in day care--meaning that over 99% of the children seeking immediate entry into day care centers are enrolled in facilities operating according to the current national standards.

There is no waiting list crisis.

What is more, the number of children on waiting lists has fallen by 31% over just the last five years, from 26,000 children in 2002 to under 18,000 in 2007. Given the decline in the number of children nationwide, this seems to a problem that is going to solve itself.

Furthermore, as the right graph shows, 70% of the children on waiting lists today are from 74 municipalities--with the remaining 30% coming from an additional 294 municipalities.

A small fraction of the country's total number municipalities

Now it may be the case that these municipalities are hard cases--chronically incapable of providing a sufficient number of open spaces at facilities that meet the minimum national day care center standards. Perhaps these hard-pressed municipalities need flexibility in terms of the minimal facilities so that they help their young parents.

But is the problem facilities? Some 70% of the children on waiting lists are under three years of age. The size of the facilities are usually not the issue for such children--the limiting factor is almost always is the number of caregivers that must be employed to watch over them. Under national guidelines, one caregiver can watch over 3 infants under 1 year of age or 6 toddlers of either 1 or 2 years of age.

When children turn 3 years of age and ratio of children to caregivers drops from 6:1 to 20:1--the number of kids on the waiting list falls.

The waiting list problem seems more likely an employment issue than a facilities issue.

So what is this about, this handing off of standard setting on childcare facilities to the local municipalities, having the municipalities set their own lower minimum standards for facilities, replacing the minimal standards first established in 1948 when the country was dirt poor?

Could it have anything to do with local officials possibly noticing that

a) young adults in the childbearing years vote too infrequently

b) children cannot vote at all

c) the number of children is falling

d) the number of the elderly is rising

e) young working parents (for the children to be eligible for the day care centers both parents must be working) are grateful for whatever childcare they can afford

f) the elderly, who also put heavy demands on government services, vote at the highest rate of all

g) in an era of limited resources something, somewhere has to give, doesn't it?

Of course, this is an exceptional case. One almost certainly could not find another example of decentralization encouraging the possible rationing of services out to special interest groups within the electorate.

Wednesday, April 16, 2008

Tokyo Rising Yet Again

Among the many interesting figures highlighted in the April 15 population statistics release of the Ministry of Internal Affairs and Communications (MIC) is a landmark in the Tokyo Metropolitan District's march to national dominance.

As of October 1 last year the TMD's population had risen to 10% (with a little rounding help) of Japan's total population.

The concentration has historical antecedents. According to the linked pdf document, Tokyo's proportion of the total population rose to 11.1% in the period 1965 to 1969, then began to decline. It fell below a statistical 10.0% twenty-eight years ago, as the great mai homu and manshon boom of the Seventies and Eighties and then the skyrocketing of urban land prices under the late 1980's property bubble drove population out of Tokyo into the surrounding Kanagawa, Saitama and Chiba Prefectures. The failure of the financial system to cleanse itself and the grinding down of property values perpetuated the fall in the TMD's relative standing. Little new housing was built as land owners awaited the real estate rebound that never came. Fewer came to try their fortune in Tokyo. Births dropped as couples chose to have fewer children.

The TMD's proportion of the total bottomed out at 9.4% in 1998--the year of the Takushoku Bank and Yamaichi Securities failures and the "Japan Premium" in the debt markets, when the national mood was at its nadir.

During the past decade of economic recovery population has been swirling back population into the TMD. In addition, within the 23 central wards of the TMD natural population growth--i.e., births outnumbering deaths--continues to significantly contribute to population growth as well (these figures not in yesterday's MIC report but in the TMD government's own population report, introduced here). On the aggregate within the TMD, the natural rate of population growth is only just a shade above zero at 0.07% (Easy-going Okinawa remains the land of the breeders, with a 0.54% natural growth rate).

The concentration of the population into a very small number of megacities continues apace. According to the MIC figures, the total population of the Tokyo metro area ( 東京圏 -- i.e., the TMD and the three prefectures surrounding) was 34,827,000--a thumping 27.3% of Japan's total population. The proportion of Japanese living in the top five prefectures by population--the TMD, Kanagawa, Osaka, Aichi and Saitama--is 35.1%, while the proportion of those living in the top 3 urban concentrations--the Tokyo, Aichi and Osaka greater metro areas--is a wild 50.6% of the total national population.

So where are you going to site your retail business? Or invest, if you need workers? Or live, if you want to assure yourself of services as you grow old and as the total national population declines? *

And despite the ingestion of 99,000 new residents from October 2006 to October 2007, in addition to the 12,659,000 that were already there, you still can, if you need to, get away from them all--without ever leaving the TMD.



The Minami Akikawa Valley
Hinohara Township, Tokyo Metropolitan District
November 5, 2006


--------------------------
* Janne Morén will be pleased, I'm sure, by this string of rhetorical questions.