Posts Tagged ‘OECD’

In Japan, you get the education you (the consumer) pay for

Thursday, September 22nd, 2011

All in the family: National cram school Kawai Juku joins forces with local cram school Tokyo Shingaku Seminar for some educational synergy

Last week, the Organization for Economic Cooperation released a list that ranked the 31 member countries with “comparable data” in terms of public spending on education as a percentage of gross domestic product. Japan came in last at 3.3 percent. The average percentage was 5.0, with Norway at number one with 7.3 percent. However, in terms of private spending as a proportion of all expenditures on education, Japan came in third out of 28 OECD member countries with comparable data, at 33.6 percent. Only South Korea and Chile were higher.

These findings were based on data from 2008, which means they don’t take into consideration recent changes implemented by the Democratic Party of Japan. The most relevant change in this regard is the government’s decision to waive tuition for high school students by paying subsidies to local governments. High school is not mandatory in Japan, and even public high schools require fees of some sort. These subsidies will probably change the OECD’s rankings when it compiles a list for public spending in 2011, but it may not have any effect on the list for private spending. One of the reasons the DPJ pushed the tuition-free policy is because the party recognizes that in the current job climate even entry-level, minimum-wage service employment requires a high school diploma. The days when junior high school graduates were solicited for factory jobs and other blue collar work is long gone. But compared to many of the other costs that parents pay to have their children educated, public high school tuition is almost like a drop in the bucket. According to education ministry figures for 2006, the average public high school student paid ¥112,000 a year in tuition, which is certainly high for lower income families; but at the same time, the average public high school student also paid ¥176,000 a year for outside cram schools, or juku. Altogether, parents paid on average ¥520,000 a year in education costs for a child if he or she went to public high school, which is about half the cost for private high school students, who paid on average ¥1,045,000 a year (including ¥785,000 tuition and ¥260,00 for juku). Continue reading about spending of private education →

The imperfect science of delineating poverty

Wednesday, July 20th, 2011

If you live here, it's got to mean something

You’re as poor as you feel, but economists demand a criterion that’s more exact. One way is the “relative poverty” index, which the Organisation for Economic Cooperation and Development (OECD) uses. The poverty line is set at about one-half a country’s median individual income. If your income falls below that line, you are considered poor.

The Ministry of Health Labor and Welfare recently released the relative poverty statistics for Japan as of last year, and found that 16 percent of Japan’s population falls below the poverty line, which is calculated as being about ¥1.12 million in annual income for one person. This is 0.3 percentage points higher than it was the last time the survey was taken, in 2007, and 4 percentage points higher than the figure found during the first survey in 1985. On the other hand, the average population portion living below the poverty line for all 30 countries in the OECD is 10.6 percent, which is 0.4 percentage points lower than three years ago. (The only other OECD country with a higher poverty rate than Japan’s is the U.S., at 17.1 percent.) For reference, the average household income in Japan is ¥5.49 million.

Continue reading about the "relative poverty" index →

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