Stanford University

Aging

Why Did Japan Stop Growing?

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The Japanese economy has been stagnating for almost two decades. During this event, Takeo Hoshi will describe the findings of a report that he co-authored with Anil Kashyap of the Booth School of Business at the University of Chicago, the National Bureau of Economic Research (NBER), and the Federal Reserve Bank of Chicago. In the report, Hoshi and Kashyap utilized the neoclassical growth model in order to try to explain the causes of this stagnation and to identify policy choices that might help restore growth. Their focus was intentionally on longer-term issues, rather than the immediate challenges that are associated with the fallout from the global recession.

Looking at financial globalization and the collapse of the fixed exchange rate regime they found that by the end of the 1970s Japan could not rely on an undervalued currency to boost its exports. It had to rearrange its production system and other economic institutions to cope with globalization to reduce its reliance on external demand.

Japan's population structure was shifting and becoming increasingly elderly. Aging meant slower growth of the labor force. Declining fertility combined with aging eventually reduced the domestic saving that supported economic expansion during the rapid economic growth period.

Finally, monetary and fiscal policy performed poorly. The Bank of Japan consistently undershot its inflation objective. The government pursued massive fiscal stimulus during the 1990s and 2000s, so much so that Japan went from having the best debt position amongst advanced economies to the worst.

Hoshi is a Pacific Economic Cooperation Professor in international economic relations at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He is also a research associate at the Tokyo Center for Economic Research, and is on the board of directors for Union Bank. His major research area is the study of the financial aspects of the Japanese economy, especially corporate finance and governance.

He is a recipient of the 2011 Reischauer International Education award, the 2006 Enjoji Jiro Memorial Prize, and the 2005 JEA-Nakahara Prize. Among his many publications is Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001), which received the Nikkei Award for the Best Economics Books in 2002.

Philippines Conference Room

Takeo Hoshi

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Former Henri H. and Tomoye Takahashi Senior Fellow in Japanese Studies at the Freeman Spogli Institute for International Studies
Former Professor, by courtesy, of Finance at the Graduate School of Business
takeo_hoshi_2018.jpg PhD

Takeo Hoshi was Henri and Tomoye Takahashi Senior Fellow at the Freeman Spogli Institute for International Studies (FSI), Professor of Finance (by courtesy) at the Graduate School of Business, and Director of the Japan Program at the Shorenstein Asia-Pacific Research Center (APARC), all at Stanford University. He served in these roles until August 2019.

Before he joined Stanford in 2012, he was Pacific Economic Cooperation Professor in International Economic Relations at the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), where he conducted research and taught since 1988.

Hoshi is also Visiting Scholar at Federal Reserve Bank of San Francisco, Research Associate at the National Bureau of Economic Research (NBER) and at the Tokyo Center for Economic Research (TCER), and Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). His main research interest includes corporate finance, banking, monetary policy and the Japanese economy.

He received 2015 Japanese Bankers Academic Research Promotion Foundation Award, 2011 Reischauer International Education Award of Japan Society of San Diego and Tijuana, 2006 Enjoji Jiro Memorial Prize of Nihon Keizai Shimbun-sha, and 2005 Japan Economic Association-Nakahara Prize.  His book titled Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001) co-authored with Anil Kashyap (Booth School of Business, University of Chicago) received the Nikkei Award for the Best Economics Books in 2002.  Other publications include “Will the U.S. and Europe Avoid a Lost Decade?  Lessons from Japan’s Post Crisis Experience” (Joint with Anil K Kashyap), IMF Economic Review, 2015, “Japan’s Financial Regulatory Responses to the Global Financial Crisis” (Joint with Kimie Harada, Masami Imai, Satoshi Koibuchi, and Ayako Yasuda), Journal of Financial Economic Policy, 2015, “Defying Gravity: Can Japanese sovereign debt continue to increase without a crisis?” (Joint with Takatoshi Ito) Economic Policy, 2014, “Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan” (with Anil Kashyap), Journal of Financial Economics, 2010, and “Zombie Lending and Depressed Restructuring in Japan” (Joint with Ricardo Caballero and Anil Kashyap), American Economic Review, December 2008.

Hoshi received his B.A. in Social Sciences from the University of Tokyo in 1983, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1988.

Former Director of the Japan Program at the Shorenstein Asia-Pacific Research Center
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Takeo Hoshi Pacific Economic Cooperation Professor in International Economic Relations Speaker Graduate School of International Relations and Pacific Studies, University of California, San Diego
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Shorenstein APARC Winter Quarter Japan Seminar Series

Comparative policy responses to demographic change in East Asia

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East Asia's demographic landscape is rapidly changing and comparative academic research is crucial to help guide well-informed decisions in the many policy areas that are affected, such as security, economics, and immigration. From January 20 to 21, the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) gathered subject experts from numerous fields for two days of lively and productive presentations and dialogue to help identify key research issues and questions for its new, three-year research initiative on this significant subject.

Shorenstein APARC held a public panel discussion on January 20, featuring eight scholars from across the United States and Asia. The issue of aging featured prominently in their presentations, as did fertility rates and immigration. A full audio recording of the panel discussion is available on the Shorenstein APARC website and summaries of the presentations follow below. A closed-session workshop took place the next day, the discussions from which will serve as the foundation for future programs and publications related to the research initiative.

January 20 Panel Discussion Presentations

The link between demography and security is more tenuous in East Asia than in other parts of the world, suggested Brian Nichiporuk, a political scientist with the RAND Corporation. Nichiporuk discussed possible policy responses to demographic change in Japan, North and South Korea, the Russian Federation, and China. He suggested, for example, that Japan's new maritime security focus is related to perceived economic and political competition from China, which is magnified by its domestic demographic concerns.

Michael Sutton, a visiting fellow with the East-West Center in Washington, DC, stated that Japan's aging population would remain a major policy issue for the next 20–30 years. He emphasized that the policy challenges posed by this phenomena are complicated by the role that the United States plays in the regional security structure, and also by the growing dominance of China and the history that it shares with Japan. Nonetheless, maintained Sutton, despite the obvious challenges, it is possible for Japan and the other countries facing this demographic issue to successfully adapt.

Social attitudes and policy in East Asia do not favor immigration, as they do in European countries such as Spain and Italy, suggested John Skrentny, director of the Center for Comparative Immigration Studies at the University of California, San Diego. Skrentny focused his talk on low-skill immigrant workers in South Korea and Japan, noting that these two countries, which began receiving workers in the 1970s and 1980s, commonly associate immigrants with social disruption. According to Skrentny, immigration policy is often tied to economics and tends to favor co-ethnic workers.

Chong-En Bai, chair of the Department of Economics at Tsinghua University, discussed numerous economic policy implications and responses related to demographic change in China. He noted areas where successful policies have been adopted but challenges still remain, including savings and investment, labor and urbanization, pension, healthcare, and long-term care. Bai described, for example, how the children of rural migrants now have access to urban schools, but that they still face the logistical challenge of having to travel back to their home provinces to take college entrance examinations.

Examining demographic change and health improvements is essential to understanding the significant economic growth in East Asia over the past several decades, emphasized David Bloom, chair of the Department of Global Health and Population at Harvard University. He noted the success of East Asian countries in lowering their infant mortality rates through investment in public health improvements, such as sanitation and vaccination. Bloom suggested that these and other past successful policy mechanisms have run their course, and that it is now imperative to find ways to address the region's key demographic issue of aging.

Naohiro Ogawa, director of the Population Research Institute at Nihon University, described findings from the National Transfer Accounts (NTA) project, an international effort to gauge economic flows across age groups. He discussed the pressure placed on Japan's working-age population by the increasing cost of caring for children and the elderly, as well as the challenges and possibilities related to having a large, healthy, aging population. Ogawa noted that institutional responses to demographic change, such as increasing the retirement age and adopting more open immigration policy, have moved slowly in Japan.

Andrew Mason, a professor of economics at the University of Hawai'i, Manoa, also utilized NTA data to make predictions about East Asia's economic future. He proposed that the amount of human capital, such as the money that parents spend on the education of their children, is likely to grow quite rapidly. He also suggested that financial wealth in East Asia is likely to increase significantly as the populations of its countries age. Finally, he suggested that the current trend of regional economic growth would continue, although at a somewhat steadier rate. Mason qualified his predictions with questions, such as whether the return on investment in education would be commensurate with what is spent.

James Raymo, a professor of sociology at the University of Wisconsin-Madison, described a wide array of findings about changes in fertility and family structure in Japan and their connections, as well as possible policy implications. Raymo discussed trends in marriage, childbearing, divorce, non-marital cohabitation, and the participation of women in the labor force. He pointed to gaps in current research, and suggested possible linkages to research on other demographic trends, such as Japan's aging population.

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China is becoming increasingly urbanized as the government adopts policies to encourage migration from the countryside. Rural migrant families face challenges amidst the new urban opportunities. | Sarah Lin Bhatia
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Aging Asia now available

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In conjunction with its launch of a three-year research initiative to study the effects of demographic change in Asia, the Walter H. Shorenstein Asia-Pacific Research Center is pleased to announce the publication of Aging Asia: The Economic and Social Implications of Rapid Demographic Change in China, Japan, and South Korea. The book covers a diverse range of issues of demographic change, including intergenerational transfers in Japan, marriage and the elderly in China, pension reform in South Korea, and the Asia-Pacific diabetes epidemic.

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The median age of China's population will soon surpass that of the United States. | Chris Lee
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Qiulin Chen

Shorenstein APARC
Stanford University
Encina Hall, Room C335
Stanford, CA 94305-6055

(650) 736-0771 (650) 723-6530
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2011 Shorenstein-Spolgi Fellow in Comparative Health Policy
Qiulin_Chen3x4.jpg MA, PhD

Qiulin Chen is a postdoctoral fellow of Shorenstein APARC and a member of the center's Asia Health Policy Program. His main interest of research is health economics and public finance, focusing on policy and outcome comparison of health care systems and Chinese health reform. His dissertation focused on performance comparison between public (or governmental) and private health care financing, between local and central government responsibility on health care, between contracted and integrated health care system. In particular, his dissertation examined under Chinese-style decentralization, known as fiscal decentralization with political centralization, how economic competition affect local government's behaviour on health investment, and why public contracted system obstructs health performance and provides one channel of such effects in terms of preventive care and public health. He is currently involved in a comparative research project on demographic change in East Asia based on the National Transfer Accounts data and analysis.

Chen's recent publication is "The changing pattern of China's public services" (with Ling Li and Yu Jiang) in Population Aging and the Generational Economy: A Global Perspective (Ronald Lee and Andrew Mason, editors), forthcoming 2011. Before studying in Stanford, he has published more than 10 papers in academic journals in Chinese, such as Jing Ji Yan Jiu (Economic Research) and Zhong Guo Wei Sheng Jing Ji (Chinese Health Economics), and 5 book chapters. He has participated in about 20 research projects, such as A Design of Framework for Healthcare Reform in China which is commissioned by the State Council Working Party on Health Reform, Strategy Planning Study of "Healthy China 2020" which is commissioned by the Minister of Health, and Health Challenge in the Aging Society and It's Policy Implication funded by Chinese National Natural Science Foundation.

Chen earned his Ph.D. in Economics from Peking University in 2010, and earned a B.A. in Business Administration from Nanjing University in 2001. From 2004 through 2008, he was Executive Assistant of the Director of the China Centre for Economic Research at Peking University (CCER). He is also a postdoctoral fellow of National School of Development at Peking University (Its predecessor is CCER).

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Single-mothers in Japan: Living Arrangements and Well-Being

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Winter Quarter Japan Seminar Series

The prevalence of single-mother families in Japan has increased markedly as a result of rising divorce rates. Unlike in the U.S, where the well-being of single mothers and their children is a central research and policy focus, we know very little about single-mother families in Japan. The most widely-discussed characteristic of these families is their economic deprivation. Over half of Japanese single mothers live in poverty despite the fact that nearly all are employed. In the context of limited public income transfers and low earnings, intergenerational coresidence is a potentially important source of support that may buffer the impact of single-parenthood for the nearly one-in-three single mothers who live with their parents.

In this talk, Professor Raymo will present results from the first two studies to examine the role of living arrangements in moderating relationships between single parenthood and well-being in Japan. In the first study, he uses data from a survey of single mothers to examine differences in the self-rated health and subjective economic well-being of those living with parents and those living alone. In the second study, he uses data from two rounds of a nationally-representative survey to compare time spent with children in single-mother families and two-parent families, paying attention to the ways in which the presence of coresident grandparents may moderate relationships between family structure and parent-child interactions. In both studies, I find that single mothers living alone are characterized by relatively poor outcomes, net of theoretically relevant controls. In the second study, he also finds that single mothers living with parents are no different than their married counterparts in terms of the time spent playing with, instructing, and eating dinner with children. He discusses the potential implications of these findings for inequality and the reproduction of disadvantage in Japan.

Jim Raymo is Professor of Sociology at the University of Wisconsin-Madison where he is also an affiliate of the Center for Demography and Ecology, the Center for Demography of Health and Aging, and the Center for East Asian Studies. Raymo's research focuses primarily on evaluating patterns and potential consequences of demographic changes associated with rapid population aging in Japan. He has published widely on key features of recent family change in Japan, including delayed marriage, extended coresidence with parents, and increases in premarital cohabitation, shotgun marriages, and divorce. In two other lines of research, he has examined relationships between work, family characteristics, and health outcomes at older ages in Japan and patterns of retirement and well-being at older ages in the U.S. He is currently involved in the early stages of a project that will examine family change and inequality in Japan in cross-national comparative perspective. His research has been published in top U.S. journals such as American Sociological Review, Demography, and Journal of Gerontology: Social Sciences as well as in Japanese journals.

Raymo teaches classes on Family and Household Demography, Demographic Techniques, and Research Methods. He is currently the Associate Director of Training at the Center for Demography and Ecology and the faculty director of the Sociology Department's Concentration in Analysis and Research. He also serves on the editorial boards of Demography and Journal of Marriage and Family. Raymo received his Ph.D. in Sociology from the University of Michigan after completing his M.A. in Economics at Osaka City University in Japan.

Department of Sociology
Main Quad, Building 120
Mendenhall, Room 101

James Raymo Professor of Sociology Speaker University of Wisconsin, Madison
Seminars
Shorenstein APARC Winter Quarter Japan Seminar Series

Aging Asia

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AgingAsia

In the past fifty years, two factors have led to global population aging: a decline in fertility to levels close to—or even below—replacement and a decline in mortality that has increased world average life expectancy by nearly 67 percent. As the population skews toward fewer young people and more elderly who live longer postretirement lives, demographic changes—labor force participation, savings, economic growth, living arrangements, marriage markets, and social policy—are transforming society in fundamental, irreversible ways.

Nowhere are these effects of aging and demographic change more acute—nor their long-term effects more potentially significant—than in the Asia-Pacific region. How will these developments impact the economies and social protection systems of Japan, South Korea, China, and, by extension, the United States?

To assess this question, Aging Asia showcases cutting-edge, policy-relevant research. The first section focuses on demographic trends and their economic implications; the second section approaches select topics from a global comparative perspective, including social insurance financing, medical costs, and long-term care.

Desk, examination, or review copies can be requested through Stanford University Press.

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 The Economic and Social Implications of Rapid Demographic Change in China, Japan, and South Korea

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Comparative Policy Responses to Demographic Change in East Asia: Defining a Research Agenda

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Demographic changes are profoundly shaping the political, economic, and social landscape of the Asia-Pacific region. How have individuals, families, communities, and policymakers responded? How should they? For example, how will national and social identities transform as population ageing strains traditions of filial piety and immigration disrupts ethnic homogeneity? Will the economies of East Asia languish, or will a "second demographic dividend" spur renewed economic growth? Demographic change can have important psychological and political effects. For example, can one seriously imagine a resurgent, militaristic Japan with a declining and aging population? The responses to demographic change in Japan, South Korea, China, and their neighbors will have great potential long-term effects in the Asia-Pacific region.

This panel discussion, the opening and public portion of a 1-1/2 day workshop that will define a research agenda for the next three years, will bring together selected outside experts and faculty within the Shorenstein Asia-Pacific Research Center for an interdisciplinary and comparative discussion of the policy responses to rapid demographic change in East Asia.

  • 3:00p.m. – 3:10p.m.
    Gi-Wook Shin, Director, Shorenstein Asia-Pacific Research Center, Stanford University: Introduction and welcome
  • 3:10p.m. – 3:25p.m.
    Brian Nichiporuk, RAND Corporation: The Security Implications of Demographic Trends in East Asia
  • 3:25p.m. – 3:40p.m.
    Michael Sutton, East-West Center, Washington, DC: Political & Security Implications of Population Aging in Japan
  • 3:40p.m. – 3:55p.m.
    John Skrentny, Director, Center for Comparative Immigration Studies, Professor of Sociology, University of California, San Diego: An East Asian Model to Managing Immigration? Durability & Change in the 2000s.
  • 3:55p.m. – 4:10p.m.
    Chong-En Bai, Chair, Department of Economics, Freeman Chair Professor of Economics, Tsinghua University: Policy Responses to Demographic Change in China
  • 4:10p.m. – 4:25p.m.
    David Bloom, Clarence James Gamble Professor of Economics and Demography Chair, Department of Global Health and Population, Harvard University: Demographic Change in East Asia: Challenges, Options and Evidence
  • 4:25p.m. – 4:40p.m.
    Naohiro Ogawa, Director, Population Research Institute, Nihon University: Population Aging & Changing Human Capital in Japan & other East Asian Countries
  • 4:40p.m. – 4:55p.m.
    Andrew Mason, Professor of Economics, University of Hawaii, Manoa & Senior Fellow, East-West Center, Hawaii: Population Aging and the Generational Economy: Key Findings
  • 4:55p.m. – 5:10p.m.
    James Raymo, Professor of Sociology, University of Wisconsin, Madison The “Second Demographic Transition” and family change in Japan
  • 5:10p.m. – 5:30p.m.
    Discussion/Conclusion
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Gi-Wook Shin

Shorenstein APARC
Encina Hall E301
616 Jane Stanford Way
Stanford, CA 94305-6055
(650) 724-8480 (650) 723-6530
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Senior Fellow at the Freeman Spogli Institute for International Studies
Professor of Sociology
William J. Perry Professor of Contemporary Korea
Professor, by Courtesy, of East Asian Languages & Cultures
Gi-Wook Shin_0.jpg PhD

Gi-Wook Shin is the William J. Perry Professor of Contemporary Korea in the Department of Sociology, senior fellow at the Freeman Spogli Institute for International Studies, and the founding director of the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) since 2001, all at Stanford University. In May 2024, Shin also launched the Taiwan Program at APARC. He served as director of APARC for two decades (2005-2025). As a historical-comparative and political sociologist, his research has concentrated on social movements, nationalism, development, democracy, migration, and international relations.

In Summer 2023, Shin launched the Stanford Next Asia Policy Lab (SNAPL), which is a new research initiative committed to addressing emergent social, cultural, economic, and political challenges in Asia. Across four research themes– “Talent Flows and Development,” “Nationalism and Racism,” “U.S.-Asia Relations,” and “Democratic Crisis and Reform”–the lab brings scholars and students to produce interdisciplinary, problem-oriented, policy-relevant, and comparative studies and publications. Shin’s latest book, The Four Talent Giants, a comparative study of talent strategies of Japan, Australia, China, and India to be published by Stanford University Press in the summer of 2025, is an outcome of SNAPL.

Shin is also the author/editor of twenty-seven books and numerous articles. His books include The Four Talent Giants: National Strategies for Human Resource Development Across Japan, Australia, China, and India (2025); Korean Democracy in Crisis: The Threat of Illiberalism, Populism, and Polarization (2022); The North Korean Conundrum: Balancing Human Rights and Nuclear Security (2021); Superficial Korea (2017); Divergent Memories: Opinion Leaders and the Asia-Pacific War (2016); Global Talent: Skilled Labor as Social Capital in Korea (2015); Criminality, Collaboration, and Reconciliation: Europe and Asia Confronts the Memory of World War II (2014); New Challenges for Maturing Democracies in Korea and Taiwan (2014); History Textbooks and the Wars in Asia: Divided Memories (2011); South Korean Social Movements: From Democracy to Civil Society (2011); One Alliance, Two Lenses: U.S.-Korea Relations in a New Era (2010); Cross Currents: Regionalism and Nationalism in Northeast Asia (2007);  and Ethnic Nationalism in Korea: Genealogy, Politics, and Legacy (2006). Due to the wide popularity of his publications, many have been translated and distributed to Korean audiences. His articles have appeared in academic and policy journals, including American Journal of Sociology, World Development, Comparative Studies in Society and History, Political Science Quarterly, Journal of Asian Studies, Comparative Education, International Sociology, Nations and Nationalism, Pacific Affairs, Asian Survey, Journal of Democracy, and Foreign Affairs.

Shin is not only the recipient of numerous grants and fellowships, but also continues to actively raise funds for Korean/Asian studies at Stanford. He gives frequent lectures and seminars on topics ranging from Korean nationalism and politics to Korea's foreign relations, historical reconciliation in Northeast Asia, and talent strategies. He serves on councils and advisory boards in the United States and South Korea and promotes policy dialogue between the two allies. He regularly writes op-eds and gives interviews to the media in both Korean and English.

Before joining Stanford in 2001, Shin taught at the University of Iowa (1991-94) and the University of California, Los Angeles (1994-2001). After receiving his BA from Yonsei University in Korea, he was awarded his MA and PhD from the University of Washington in 1991.

Stanford Next Asia Policy Lab (SNAPL)

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Shin's Reflections on Korea

A monthly column in the Korean magazine Sindonga
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Reengaging North Korea

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Stanford Asia-Pacific Innovation

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Director of the Korea Program and the Taiwan Program, Shorenstein Asia-Pacific Research Center
Director of Stanford Next Asia Policy Lab, APARC
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Gi-Wook Shin Director Speaker Shorenstein Asia-Pacific Research Center, Stanford University
Andrew Mason Professor of Economics, University of Hawaii, Manoa & Senior Fellow Panelist East-West Center, Hawaii
Naohiro Ogawa Director, Population Research Institute Panelist Nihon University
David Bloom Clarence James Gamble Professor of Economics and Demography, Chair, Department of Global Health and Population Panelist Harvard University
Chong-En Bai Chair, Department of Economics, Freeman Chair Professor of Economics Panelist Tsinghua University
John Skrentny Director, Center for Comparative Immigration Studies, Professor of Sociology Panelist University of California, San Diego
Michael Sutton Panelist East-West Center, Washington, DC
Brian Nichiporuk Panelist RAND Corporation
James Raymo Professor of Sociology Panelist University of Wisconsin, Madison
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Comparative Policy Responses to Demographic Change in East Asia
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