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, nearly 20% of total labor input is devoted to compliance tasks, implying a significant negative impact on macroeconomic productivity. Third, engaging in compliance tasks is associated with perceptions of workplace understaffing and frequency of sudden overtime. These findings suggest that reducing and streamlining such work has the potential to enhance both productivity and the well-being of workers.

This is the English version of the Japanese Policy Discussion Paper (25-P-015) with some additional information and changes.