Research Programs: Macroeconomy and Low Birthrate/Aging Population

Macroeconomic and social security policies under demographic aging: dynamics of firms, individuals and inequality

Project Leader/Sub-Leader

KITAO Sagiri

KITAO Sagiri (Faculty Fellow)



What kind of policies are required to revitalize the macro economy in rapidly aging Japan? In this project, we make full use of micro data at individual and firm levels and build and apply macroeconomic models that capture the heterogeneity among individual agents.

In Japan, where the labor force is declining significantly with the aging of the population, major changes in tax, social security system, and labor market policies are inevitable. It is necessary to make efficient use of scarce labor resources and work on reforms without hindering economic incentives and growth. Themes of the project include: corporate dynamics under population decline, technological innovation and labor market polarization, health insurance system analysis based on medical expenditure risk, fixed-term employment system and human capital investment, altruistic preference and intergenerational interests, and income inequality and tax systems.

April 12, 2021 - September 30, 2023

(During the research project period, the research activity period is set from April 12, 2021 to March 31, 2023, and the data usage reporting period is set from April 1, 2023 to September 30, 2023.)

Major Research Results


RIETI Discussion Papers