The Effects of the Low Birth Rate on the Japanese Social Security System
The welfare state financing is the serious problem in Japan with rapid ageing population and Alterations in the rules based on family formation and family life;
• The employment insecurity and economic context may result in family size reduction if parents do not gain support to lower down the raising children costs;
• Preferences of women for working to assure economic security; and
• Alterations in attitudes towards the value and children specified to wellbeing and education.
To support working parents and families the policies are established in different forms such as childcare services, cash benefits, flexible working time arrangements and entitlements to leaves based on child. They do not essentially result in greater fertility. In fact, how policies denote to describe the variations of cross-country in fertility still remains an open query (Letablier, 2008). It is necessarily worth able for the public pension system of Japanese to be as neutral as possible in very rapid population aging. The Japanese transfer and tax system of future reforms would have to pay more attention to a) altering the framework of social spending inevitably biased towards the elders and refocusing on youth generations; b) deploying measures that enhance youth parents to integrate child increment and work; and c) making social systems neutral to the life style of individual. It is obvious that new solidarity form is required in Japanese society, and every member must bear appropriate burden. Actual effects of low birth rate must be faced previously by whole concerned parties resulting in policy-making based on evidence.