Age and Trade Policy Preferences in an Aging Society: Evidence from Japan

• In Event: Political Economy of East Asia

Abstract

Standard economic models of trade emphasize production ownership and industrial sector as key determinants of trade policy preferences. This emphasis has directed the focus of previous studies to working-age individuals. Age is often included as a demographic control, but little attention has been paid to the influence that age has on the formation of trade policy preferences. However, understanding this issue is crucial as the rapid population graying recently faced by many advanced industrial societies has altered the supply and demand patterns of labor, not only affecting the relative abundance of labor but also increasing economic insecurity among individuals. Using survey experiment data from Japan, a prototypical aging society, we argue that the trade policy preferences of the elderly depend on regional demographic structures. We find that in regions with greater aging and where elderly poverty is a more pressing issue, senior citizens are more likely to oppose trade. In addition, those living in graying regions are also more sensitive to producer-priming than consumer-priming for population aging issues, further reinforcing their opposition to trade.

Authors

• ByeongHwa Choi, National Taiwan University

• Yesola Kweon, Sungkyunkwan University (SKKU)