The silver markets in Japan through regulatory reform

Abstract

As the aging of Japan's population is rapidly proceeding, the market for the elderly is growing too. The health care service industry is one of the most promising because the customers are increasing and it is still underdeveloped, with various regulations impeding new entries. If these obstacles are removed, the potential demand for health care services would be stimulated, and the productivity level could be improved. Major issues here are revision of the rules on banning the mixing of public and private health insurance, and financing for profit hospitals. Demand for nursing care services are also expanding, and nursery schools for children become more important as more Japanese women start to work full-time under tightening labor market conditions. Both are affected by the changes in Japan's family structure with the continuously declining share of three-generation households, and both are also under heavy government intervention. Thus, regulatory reform is a key to developing these silver industries in Japan. © 2008 Springer-Verlag Berlin Heidelberg.