Japan

Did You Know?

Population
127.6
mil.
Visitors per year
8.4
mil.
Renewable energy
3.42
%

How’s Life?

Japan performs favourably in several measures of well-being, and ranks close to the average or higher in several topics in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Japan, the average household earned 23 210 USD in 2008, more than the OECD average .

In terms of employment, nearly 70% of people aged 15 to 64 in Japan have a paid job. People in Japan work 1714 hours a year, less than in other OECD countries. 66% of mothers are employed after their children begin school, same as the OECD average, suggesting that women are able to successfully balance family and career.

Having a good education is an important requisite to finding a job. In Japan, 87% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, one of the highest rates in the OECD. Japan is also a top-performing country in terms of the quality of its educational system. The average student scored 520 out of 600 in reading ability according to the latest PISA student-assessment programme, higher than the OECD average.

In terms of health, life expectancy at birth in Japan is 82.7 years, the highest rate in the OECD. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 27 micrograms per cubic meter, and is higher than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community and moderate levels of civic participation in Japan. 90% of people believe that they know someone they could rely on in a time of need, close to the OECD average. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 67% during recent elections; this figure is lower than the OECD average of 72%. In regards to crime, only 2% of people reported falling victim to assault over the previous 12 months.

When asked, 40% of people in Japan said they were satisfied with their life, below the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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Japan in Detail

Housing

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Key Findings

In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. Over 62% of occupied dwellings in Japan are inhabited by the owners themselves, less than the OECD-23 average of 67%.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Japan, the average home contains 1.8 rooms per person, more than the OECD average of 1.6 rooms per person. In terms of basic facilities, 6.4% of dwellings in Japan lack private access to indoor flushing toilets, much more than the OECD average of 2.8% dwellings.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In Japan, the average household net-adjusted disposable income is 23 210 USD a year, higher than the OECD average of 22 284 USD.

Household financial wealth is the total value of a household’s financial worth. In Japan, the average household wealth is estimated at 70 033 USD, much higher than the OECD average of 36 808 USD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In Japan, nearly 70% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 65%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Japan, the percentage of the labour force that has been unemployed for a year or longer is currently at 1.99%, lower than the OECD average.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Japan, 90% of people believe that they know someone they could rely on in a time of need, close to the OECD average. Nearly 23% reported having helped a stranger in the last month, the lowest rate in the OECD.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations. Nearly 15% of people in Japan reported ‘rarely’ or ‘never’ spending time with friends, colleagues or others in social settings; this is the highest figure in the OECD.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Across OECD countries, men with university-level degrees are 16% more likely to find jobs, and women are 30% more likely. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market. 87% of adults in Japan aged 25-64 have earned the equivalent of a high-school degree, higher than the OECD average of 73% and one of the highest rates in the OECD.

Graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school.

Japan is a top-performing OECD country in reading literacy, with the average student scoring 520 out of 600. This score is higher than the OECD average of 493, making Japan the 5th strongest OECD country in reading skills. Additionally, certain students performed exceptionally well in mathematics with more than 21% reaching the two highest levels of proficiency, and in science with more than 17% reaching the two highest levels of proficiency.

Better Policies for Better Lives

Japan has been at or near the top of the international rankings on education. Its success can be attributed to a first rate teaching force, superb family support for students at home, the way resources are focused on instruction and the strong incentives for students to take tough courses and study hard in school. The Japanese education system is also grounded in a deep commitment to children that is both concrete and enduring.

A strong focus on equity

Japanese classes are heterogeneous and large (more than 35 students on average) and no student is held back or promoted on account of ability. Furthermore, all are expected to master the same demanding curriculum. This is a powerful formula for equity in terms of outcomes. What is particularly impressive about this approach is that the expected outcomes are not set at the lowest common denominator, but at the top of the range of possible outcomes worldwide.

There is a widely-shared belief in Japan that these policies achieve the greatest good for the greatest number and the results bear this out. The system is set up so that high-achieving students can help lower-achieving students within a group, within a classroom and within a school. The research literature shows that all students are helped by this approach, because the students who teach and tutor learn as much or nearly as much in the process of tutoring as the recipient of the tutoring. This approach is consistent with Japanese values and contributes greatly to the generally high level of Japanese achievement.

Additionally, Japanese teachers and principals are often reassigned to different schools by the prefectures. This is done, among other reasons, to make sure that the distribution of the most capable teachers among schools is fair and equitable. As Robert Fish remarked during his interview, "teachers and administrators are transferred regularly every few years so the same people are not in the same schools all of the time – there is a lot of levelling among schools."

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Japan, PM10 levels are 27.1 micrograms per cubic meter, higher than the OECD average of 22 micrograms per cubic meter.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. 53% of people in Japan say they trust their political institutions, close to the OECD average of 56%. High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in Japan was 67% of those registered. This figure is lower than the OECD average of 72%.

Ensuring that government decision making is not compromised by conflicts of interest is key to maintaining trust in government. Transparency is therefore essential to hold government to account and to maintain confidence in public institutions.

Freedom of information laws (FOI) allows the possibility for individuals to access undisclosed information. For such policies to be successful, the public should have a clear understanding of their rights under the law, should be able to file requests with ease and should be protected against any possible retaliation. People in Japan can only file a request for information in writing – not yet online, in person or by telephone. In addition, there are no provisions for anonymity or protection from retaliation.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. In 2008, Japan enjoyed the highest life expectancy among OECD countries, at 82.7 years for the whole population. The remarkable gains in longevity in Japan have been largely driven by falling death rates from diseases of the circulatory system, which are the lowest now of all OECD countries, for both males and females.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Total health spending accounted for 8.1% of GDP in Japan in 2007, almost one percentage point lower than the OECD average of 9.0% for 2008. Japan also ranks below the OECD average in terms of health spending per person, with spending of 2729 USD in 2007, compared with an OECD average of 3060 USD in 2008. Health spending per person in Japan rose, in real terms, by 2.2% between 2000 and 2007, a growth rate lower than the OECD average of 4.2% for 2000–2008.

Throughout the OECD, tobacco consumption and excessive weight gain remain two important risk factors for many chronic diseases.

In Japan, 26% of adults reported smoking every day in 2008, compared with an OECD average of 23%. Male smoking rates, at 40%, remain particularly high in Japan, the highest among OECD countries after Greece, Korea and Turkey.

However, at just 3.4% of the general population, Japan has the lowest rate of obesity in the OECD.

When asked, "How is your health in general?", 33% of people in Japan reported to be in good health, much lower than the OECD average of 69% and the second lowest rate in the OECD. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For Japan, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 40% were satisfied with their life and 40% believe that their life will be satisfying five years later. This is one of the lowest country expectations for future life satisfaction.

68% of people in Japan reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is lower than the OECD average of 72%.

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In Japan, only 2% of people reported falling victim to assault over the previous 12 months, lower than the OECD average of 4%. 35% of people feel unsafe on the street after dark, however, higher than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Japan’s homicide rate is 0.5, one of the lowest rates in the OECD.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In Japan, 66% of mothers are employed after their children begin school; this figure is close to the OECD average and suggests that mothers are able to successfully balance family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in Japan work 1714 hours a year, lower than the OECD average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in Japan devote 60% of their day, or 14.3 hours, to personal care (eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – lower than the OECD average.

Data for employees working very long hours in Japan rely on OECD estimates. These figures will be updated as official information becomes available.

Better Policies for Better Lives

Japan has fewer babies and lower female employment

Parents in Japan find it difficult to combine work and family commitments. Workplace practices, private costs (housing and juku), and social norms put pressure on young people. Hence, young Japanese postpone marriage, delay parenthood and often have fewer children than intended.

In 2009, only 4 countries in the OECD had fewer babies per woman than Japan. With a fertility rate of 1.37, compared to 1.74 on average in the OECD, Japan was among the “lowest-low” fertility countries. There has been a small rebound since 2005, but nevertheless the population has started to decline.

Japanese social policy has introduced several measures to reduce barriers to both parenting and employment. However, despite these efforts, policies such as childcare can be further developed. Increasing childcare provision and reducing private costs of out-of-school services are both crucial for parental employment. Japanese public spending on childcare and preschool services is the fourth lowest among OECD countries. Childcare constraints persist and enrolment rates for children under-3 (at 28%), although increasing, are still below the OECD average (31%).

Japanese workplace practices make it difficult for parents to combine work and family life, not least because of the long working hours. After the high cost of education, many educated Japanese women first want to establish regular employment before having children. Furthermore, once Japanese women leave the labour force to care for children, they often end up in non-regular employment, which is often low paid, part-time, and temporary. Parents who wish to get back to work need to have better opportunities to re-enter regular employment, otherwise, those who can afford to stay at home do so rather than return to a low-quality job. The result is fewer babies and lower female employment levels than the OECD average, at a time when Japan needs more working women to replace the aging working age population.

Indicators

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