The Effects of Demographic Change on Public Education in Japan

Fumio Ohtake and Shinpei Sano

in The Economic Consequences of Demographic Change in East Asia

Published by University of Chicago Press

Published in print October 2010 | ISBN: 9780226386850
Published online February 2013 | e-ISBN: 9780226386881 | DOI:
The Effects of Demographic Change on Public Education in Japan

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This chapter examines the political economy of education support for the young. Elderly people may be supportive of public education, if they are altruistic vis-à-vis the younger generation. Alternatively, the elderly may be self-interested, if the extra human capital provided by education provides an indirect benefit to the elderly. The chapter uses a panel data set covering Japan's 47 prefectures between 1975 and 2005. It is found that there was a change in terms of a switch in the public subsidy system, where discretionary power and the burden of the local government in public education spending has increased since 1985. The chapter concludes that using municipal data rather than prefectural data sharpens the results, as most public education decisions are done at the municipal level.

Keywords: public education; Japan; self-interested; municipal data; elderly

Chapter.  10746 words.  Illustrated.

Subjects: Business and Management

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