Compliance Costs of Government Rules and Regulations

This study estimates the compliance costs of government rules and regulations based on a survey of Japanese workers. The results reveal the following key findings. First, nearly half of all workers engage in tasks related to regulatory compliance. Second, approximately 20% of total labor input is allocated to compliance work, implying a significant negative impact on macroeconomic productivity. Third, compliance-related tasks are linked to perceptions of understaffing and increased overtime. Reducing and streamlining such work has the potential to enhance both productivity and the economic well-being of workers.