ABSTRACT
This chapter explains the income distribution among the elderly using a dynamic microsimulation model for Japan, Integrated Analytical Model for Household Simulation (INAHSIM). It also compares the percentage of the poor elderly in the population in order to evaluate income security functions for the elderly among several public pension reform proposals. INAHSIM7 is a dynamic microsimulation model for Japan. It was originally developed in the early 1980s as a household simulation model to accommodate Japan's society. The public pension scheme in Japan was established in the 1960s, and it is a two-tier system that consists of a flat-rate benefit called 'basic pension' and an earnings-related benefit for regular employees. The public pension scheme in Japan is based on a social insurance system, and there exist a considerable number of persons who do not pay their premiums, people are concerned about the growing number of the elderly with low pension amounts.
