ABSTRACT
Inequality should be addressed because it leads to poverty and negative consequences as well as itself being a result of some unjustifiable cause. However, Japan has more reason to realize an egalitarian society because the people seem to be highly risk averse. In face of the “Equity-Growth-Small Government Impossible Triangle”, choosing to grow while suppressing inequality means that Japan should surrender having a small government. In order to consider what kind of a large government Japan should have, understanding the characteristics of the policies of the Nordic economies as welfare states is important. Examining the education policy, industrial relations and labour-market policy, old-age pension system, tax system, and public social spending leads allow us to understand the commonalities and the difference between the Nordic welfare states. Towards the future, the Nordic welfare states are also facing challenges if they are to remain an egalitarian society. If Japan is to become a welfare state, it needs to design the framework on the basis of this understanding.
