Yamada Tomoaki    Department   Undergraduate School  , School of Commerce    Position   Professor
Language	English
Publication Date	2017/07
Type	Academic Journal
Peer Review	Peer reviewed
Title	Can Guest Workers Solve Japan's Fiscal Problems?
Contribution Type	Co-authored (other than first author)
Journal	Economic Inquiry
Publisher	Wiley
Volume, Issue, Page	55(3),pp.1287-1307
Author and coauthor	Selahattin Imrohoroglu, Sagiri Kitao
Details	The labor force in Japan is projected to fall from 64 million in 2014 to 20 million in 2100, signaling unprecedented tax/transfer adjustments to achieve fiscal sustainability. In this paper, we develop a quantitative overlapping generations model to measure the impact of guest worker programs in Japan. Against a baseline general equilibrium transition in which the consumption tax adjusts to achieve fiscal sustainability, we compute alternative transitions with guest worker programs. Depending on the size and skill distribution of guest workers, these programs may mitigate Japan's fiscal imbalance problem with a relatively manageable increase in the consumption tax.
DOI	10.1111/ecin.12439