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any significant sanctions for noncompliance.
In 1990, this law was substantially revised. Under the 1990 amended law, various subsidy programs for older workers have been developed to facilitate the transition to a retirement age of 65. In October 1990, for example, the Ministry of Labour began offering subsidies to companies that introduced policies such as raising the mandatory retirement age, employment extension, and reemployment in order to keep older workers on the payroll up to age 65.
In addition to these subsidy programs, the government of Japan has a wide range of other programs to promote raising of the mandatory retire ment age and to increase employment opportunities for older workers. For instance, the Ministry of Labour has organized a series of regional meetings to make employers recognize the importance of solving employment problems faced by workers in their early sixties.
The foregoing discussion clearly indicates that numerous programs have been initiated and measures taken by the government to make the transition to a mandatory retirement age above age 60 less difficult. The future directions of these labor market-oriented policies and programs are closely linked, however, with the evolution of public pension policies. Younger workers are now voicing an increasing concern about the adverse effect of the extension of the mandatory retirement age limit upon their future promotional opportunities within their firms.

2. Japan's Future Aging Process and Its Uniqueness

In the early 1980s, a macroeconomic-demographic-social security model for Japan was developed by the Nihon University Population Research Institute (the NUPRI model, hereafter). Since then, the NUPRI model has been periodically expanded and updated. The NUPRI model consists of the following three submodels: the population submodel, the economic submodel, and the social security submodel. As displayed in Figure 4, these three submodels are interdependent; the population submodel is first determined by a set of economic and social security variables with a one-year lag, and the variables in both economic and social security submodels are simultaneously determined, using the computed demographic variables.

 

 

 

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