DWIH Tokyo Conference Proceedings

German Research and Innovation Forum Tokyo | Conference Proceedings

German-Japanese Symposium
on Positive Aging

9 October 2012 | Tokyo, Japan

Table of Contents
02

Greetings

03

Positive Aging – Building up Resources for Longer Lives

09

Presentations

24

Editorial Notes
List of Contributors

GREETINGS

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Life expectancy for people in Japan and Germany has increased dramatically in thelast century, and that’s not all – we live longer and in better health, which is a positive

development. At the same time, the population composition in both countries is changing
as fewer children are born, and also immigration will not completely compensate thattrend. Japan is the world leader in longevity, and Germany has the highest proportion

within Europe (and in second place globally after Japan) of older people in its population.
The question now is whether the achievements of a welfare state can be preserved andextended under these demographic conditions. Is there a threat to the productivity ofnational economies? How are we to deal with these challenges and seize the opportuni-

ties that accompany longer life spans? What conclusions can researchers draw from hugechanges in the nature of aging and its “plasticity”?

At the invitation of the German Research and Innovation Forum Tokyo (DWIH Tokyo),
the German National Academy of Sciences Leopoldina and The University of Tokyo,
around 200 participants came together in Tokyo to address these questions. The

German-Japanese Symposium on Positive Aging brought together cutting-edge scientificexpertise from both countries, creating a forum for high-level discussion about current
aging research.

Experts from universities, industry and civil society debated which societal conditions
were necessary in order to unfold the potential of aging and adult development. They

agreed that it was possible and desirable to create opportunities for proactive aging andto enable proactive aging by improving working conditions as well as education acrossthe life span. Consequently, the central question for individuals and society is what thebest use is for the extra years of good health. A particular focus was put on the economy,
job markets, work environment and new roles in the retirement phase, especially withregard to community/civil society engagement. Furthermore, the participants discussed

how Japanese and German researchers could jointly contribute to producing an updated
picture of aging in the context of family, work and other areas of society, as well as inpolitics.

We are pleased to present to you the symposium’s proceedings, which will help disseminate the results to the wider scientific community and the general public.
Professor Dr. Ursula M. Staudinger

Marijke Wahlers

Vice President, German National Academy

Head of International Department,

Jacobs University Bremen

German Research and Innovationof Sciences Leopoldina and Vice President,

German Rectors’ Conference
Forum Tokyo

Positive Aging – Building up Resources for Longer Lives
Ursula M. Staudinger & Katja Patzwaldt

Kasosei/Plasticity

Researchers who study aging frame historical changes observed in the aging process byusing the term “kasosei”, or “plasticity”. For the gathered researchers at the GermanJapanese Symposium on Positive Aging, it was evident that further activation of the plasticity of aging requires consideration of personal as well as societal resources and theirinteraction. As researchers who study aging, we do not merely describe how things presently are; we point to the human potential that in principle can be realized throughout aperson’s life. It is in this sense that we talk about positive aging. Human abilities, competencies and well-being cannot be evaluated without considering the environment within
which human beings develop and age. The lifelong development of one’s potential and its
realization goes hand in hand with particular lifestyle(s); however, lifestyles and living
environments cannot be considered without discussion of a community that promotes
and supports certain behaviors while hindering others. Thus, it is mandatory to investigate community conditions allowing for social participation at later ages, which has
proven to be supportive of development at later ages.
In this vein, the Tokyo Institute of Gerontology (IOG) has set up a pilot project buildingon the specific Japanese culture of aging, but also on regional development trends thatare shared globally. In Japan, most people desire a post-retirement life that allows themto continue to feel useful and be active. In the past 50-60 years, it has been common formany to maintain an extraordinary work ethic, and people strive to stay connected with
their (mostly) lifelong employers.
In Japan, phasing out into retirement takes a particular form: most people work longer
than the official retirement age, which was previously set at 60 and was raised to 65 in
2013. After retirement from a “first” job, many people engage in some form of temporary
or lower-paid work. Only recently has labor policy moved toward extending the “first”
working life by increasing the retirement age. Metropolitan areas, such as Tokyo, aredivided into the working part of the city and suburban residential areas. The number ofretirees in residential areas has been rising, and Japan faces a challenge to accommodate
the wish or need to continue working after retirement given this divide between residential suburbs and working areas in inner cities. This gap is addressed by the IOG in its pilot
project, which aims to develop work opportunities for retirees in a commuter suburb ofTokyo.
For Germany, this innovative approach also bears a lesson beyond its possible application to neighborhoods. The project highlights that even very old people and individuals suffering from dementia are not completely incapacitated; under circumstances of3

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ambulatory care, people can remain active based on small islands of competence that are
maintained even if suffering from dementia. In fact, activating care is a paradigm that has
been promoted for many decades. Given innovative communities and neighborhoods
that support their inhabitants, community service provided by young-old and old adults
contributes to a highly viable living environment.
However, when discussing the potential (and positive effects) of activity at older ages,
one should bear in mind that not everyone can remain fully active at any age. Rather,each individual’s specific potential should be the basis on which living environments for
all ages should be built. Scientific and public debates, however, often overlook changes
that take place in the aging process across cohorts. Epidemiological characteristics havesubstantially improved non the least due to major public health efforts. These may deteriorate again as soon as societal efforts dwindle. The new scourge of obesity is a perfect
example of a counteracting trend.
Overall, the enormous developmental plasticity of our species poses great opportunities,
but also poses challenges for generating systematic knowledge regarding the effects ofspecific environments on certain groups of individuals. We are still far from making useof all possibilities that communities might offer to their aging populations; in particular,
creating opportunities for stronger community involvement might support satisfying
lifestyles after retirement.

Employment

Rapidly aging populations such as those in Japan and Germany are putting social security systems to the test. Under such circumstances, systematic and comprehensive survey
data regarding the economic, social and health conditions of older people is crucial inorder to provide a basis for social policy planning and adjustment. However, a survey
addressing the diversity of the older population was not set up until 2007 for Japan. In
Germany, while such surveys have been in place since the late 1980s, their financing is far
from secure and requires continuous advocacy from researchers.
In both Japan and Germany, demographic changes call for a comprehensive life-course
policy: health, pensions, education and the labor market need to be aligned and an individual’s benefits must be measured on a scale incorporating all four pillars. Health status,
productivity and employability are all interrelated. Social security should support labor
participation with regard to the employment situation and living conditions of older
adults and with regard to the familial situation of women. Such a combined policy perspective also requires acknowledging that:

a) old/retired people are not a homogeneous group and need “personalized” or tailoredpolicies;b) there is no (immediate) increase in fertility rates to be expected, hence society needs tofocus on existing people and their human capital rather than on the people who mightor might not be born; andc) this entails huge challenges for German and Japanese societies alike as more women,
migrants and older people need to be attracted and enabled to join or stay in the labor
force. This entails the challenge of increasing diversity in the workplace, which applies
to communities, companies, education and healthcare alike.
While the challenges ahead are huge, there are also prodigious opportunities. Longer
working lives and better education go hand in hand with better health and a higher quality of life; if treated properly, a greater share of older adults will provide an advantage inexperience-based innovation and greater diversity in the labor force will foster innovation and market success.

Companies

Small- and medium-sized enterprises (SMEs) – in particular, those companies providing
for tailored rather than mass offerings of products or services – have been considered as
potentially favorable environments for the employment of older adults. SMEs may be
more flexible with regard to job definitions, and the more comprehensive/holistic natureof jobs (compared to more specialized jobs in larger companies) is favorable for experienced workers. But certainly also large scale companies can provide for working environments that help maintain and develop productivity across longer lives. In currently older
cohorts of employees the question remains whether older workers are motivated to stayin the labor force. In this respect, pensions were seen as a key variable influencing thework motivation of higher age groups. Furthermore, it was expected that longer employment would lead to higher investments into lifelong learning, which in turn would raise
productivity and strengthen an individual’s wish to make use of their qualifications.
Economic competitiveness depends on the extent and the speed with which this is done.
Envisaging this dynamic, it was strongly advocated that the length of employment should
be extended immediately, independent of current worries regarding the employabilityof older persons, by raising the retirement age and by modifying pension entitlements
accordingly.

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Volunteering

Volunteering is important for society, and older, skilled, experienced adults make particular types of contributions. It is necessary that norms and values as well as institutions
generate and maintain the spirit of contributing to society. The presented research review
showed that little is known about the motives of people who volunteer. It is assumed thatboth selfish and altruistic motives play a role.
Via their political institutions, societies can reward volunteering; e.g., by increasing visibility and recognition of volunteers. On the municipal level, support structures suchas contact offices, training and professional guidance are important. However, generallevels of health and education are even more important than these specific predictors.
Increasing levels of health and education in the population increase the amount of volunteering activity observed in society. In addition, general social policy and institutionalsettings such as preschools and family support centers provide a solid basis from which
volunteering activities can spring. Research has shown that volunteering in young adulthood is the best predictor of volunteering as a retiree.

OutlookJapan and Germany are culturally quite different, but both cultures were successful inachieving an extraordinary high and hitherto unknown average life expectancy as well as
quality of life. Japan is the global leader in average life expectancy and a country with an“island of centenarians” (Okinawa), where a newborn has a good chance of living to 108110 years of age. Germany is characterized by a somewhat lower average life expectancy
and smaller share of very old people, but it is one of Europe’s leaders in average life expectancy and in the change of the overall aging structure. The explanation of such culturalachievements is very complex and mono-causal answers do not address all contributing
factors. Nevertheless, it is valid to assume that prosperity, a high educational level and avery good healthcare system are among the factors supporting this cultural achievement
in both countries. In Japan, a nutritional style that is low in fat, sugar and meat, but highin vegetables and fish, plus a generally moderate intake of food seems to be essential. Similarly, the strong value that the Japanese society places on every member making a meaningful contribution to the community, even after retirement, appears to be an importantcomponent of a long and healthy lifespan. In both countries as well as in many others, the“baby boom” generation is approaching retirement age, bringing challenges for the labormarket but also opportunities for the reconstruction of the retirement phase due to the
expectations, values and the health status of this new generation of older adults.
Neither Japan nor Germany has a history as an explicit immigration country. Due toimpending changes to the labor market, however, Germany has started to develop an
immigration policy with respect to filling emerging gaps in the labor market. Japanmight follow that pathway. Both countries are characterized by traditional family values
with a rather low labor force participation of women, high prevalence of part-time work
for mothers and long maternal leaves.
Migrants and women are two of the four underdeveloped resources that can help compensate for a shrinking labor market; lowly qualified persons are the third group underrepresented in the labor market. The fourth group, workers 50+ years of age, has been
and continues to be an obvious resource, especially as their experience is such an important asset for high-tech and tailored production companies. At first glance, they seem tobe easily accessible since in most cases they “only” need to be retained in the workplacerather than recruited. At second glance, however, it is evident that employee retention
policies require more investments into lifelong learning and human resource development as well as work organization and health resources. This necessitates tremendous
adjustments within companies.
In Japan, the good health of older people combined with a lingering cultural reservation against increasing workforce participation of migrants and women gives rise to a
discussion of extending an individual’s working life up to their 9th decade. In Germany,
the trend is to keep people employed for decent wages as long as possible and to opt for
more frequent job changes and accompanying training in order to maintain and develop
employability and productivity. Collective bargaining in the German forerunner industries, metals and chemicals, has set the path for qualification funds, and recently, occupational insurances have sought to ease financing issues for lateral career changes, e.g., incaretaking and building professions.
Volunteering has become more popular in both countries over the last decade. Municipalities profit from people’s experience and desire to play an active part in society during
their retirement. However, it is crucial to clearly define areas that must be run by professionals. Successful volunteering also requires infrastructure and training measures to betaken before volunteers are sent into the “field”.
Finally, presentations and discussion showed that despite cultural differences, the doubling of an individual’s average lifespan over the past 150 years and tremendous healthimprovements allow and incentivize individuals to continue to stay active after retirement. At the same time, such activity can be channeled in various ways, including

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through financial incentives, recruitment and retention practices of companies and volunteering organizations. While it was not an explicit topic at the symposium, it was ofhigh interest to researchers and audience alike to review the differences in the cultures ofwork and aging in both countries.
Researchers from both countries agreed that the social and behavioral sciences havemuch to offer with regard to tackling the challenges that demographic changes pose forour societies. More research is needed to examine the complex interactions between an
aging individual and their environment, which will then allow us to further unfold thepotential of aging.

Presentations

Redesigning Communities for the Aged Society
Hiroko Akiyama

Currently, 24 % of the Japanese population is age 65+. It is predicted that one-third of
the population will be 65+ and one fifth will be 75+ by 2030. Japan is not only number
one in life expectancy, but also in healthy life expectancy. Moreover, fitness increases
substantially even in the small time slot of one decade. For instance, comparing data on
average walking speed from 1992 and 2002, it has been shown that the performance ofa particular age group has increased to match the previous performance of an age group
11 years younger. Building on these performance increases, the aim of retaining independence as long as possible in higher age groups is realistic. To reach that goal, a complex
environment needs to be present that strengthens social bonds, allowing people to stayhealthy and active and live with a sense of security.
The existing infrastructure of Japanese communities, built when the country’s average
population age was much younger, does not live up to such requirements. Both hard andsoft infrastructure of communities has to be changed according to the needs of a highly
aged population. One example of adaptation is a project organized by the Institute ofGerontology at the University of Tokyo. It aims at turning the concept of “aging-inplace” into reality in Kashiwa, which is a typical bed-town 30 km away from Tokyo. The
project focuses on the Toyoshikidai housing estate in Kashiwa, built in the 1960s, thathas been aging in terms of both its physical structure and its residents. The project plan
includes replacing the old five-story residential buildings with barrier-free condominium
blocks to ensure mobility. The new buildings will offer housing for people at various life
stages so they can move to a place that best meets their needs throughout their life course.
It will make “aging in place” possible.
One of the major projects in Kashiwa is called “Work places for the second life”. A huge
number of baby boomers currently working in Tokyo will soon retire and come back to
the community. Emerging evidence indicates that working after age 65 helps maintainphysical and cognitive functions and enhances social activities, and in this project, agefriendly workplaces are created with a flexible employment scheme, giving residents theoption to work up to the age of 80. The project also tests products that provide older
workers with safe and productive work environments.
This kind of social experiment requires not only collaboration among researchers in different disciplines, but also full collaboration between local governments, business communities, NPOs and residents.

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Challenges and Chances of Aging Workforces in Firms
Uschi Backes-Gellner

Economic crises in past decades have swept more elderly workers than younger workers
out of employment, and Western societies have seen massive waves of early retirementin the last few decades. The actual average retirement age is much lower than the official
retirement age. Despite a formal retirement age of 65 in Germany, the average retirement
age was 60 during the 1990s. Early retirement and dismissals of elderly workers dramatically changed the workforce composition inside German companies. A representative
study for the year 2002 found that around 40 % of firms did not employ a single worker
older than 50 years of age. Though this may be an extreme example, comparative evidence points to similar developments in other industrialized economies.
The tide is turning due to demographic changes. Fewer younger workers will be available
and many reasons that previously induced employers to lay off older rather than younger
workers will be eradicated. Not only has early retirement become too expensive for thesocial security system and taxpayers, but also companies will be faced with a shortageof skilled workers as baby boomers near retirement. Businesses will need to leverage theproductivity potential of older generations to stay competitive. Although past researchsuggested that older workers are less productive on average, the results are inconclusive.
One problem is that such productivity studies typically used one-dimensional performance indicators, even though productivity in real organizations typically depends
on multiple outputs and on a variety of performance criteria. A second problem is thatstudies primarily focused on individual rather than group performance as an outcomeof aging processes. In the business world, however, workers typically perform their job ingroups of different ages and the optimal mix of ages becomes an important consideration.
Whether a high share of elderly group members is good or bad for company performance
depends on the overall task requirements and on the relative advantages and knowledge
pool of older and younger workers.
Future employment strategies will have to focus more on an optimal age mix and on utilizing the full potential of the elderly. In affluent societies, elderly workers will have more
opportunities than ever before of being employed in meaningful and well-paid jobs. Scientists and managers have generally overlooked the advantages that older workers canoffer to a company, which has had detrimental effects during the last few decades. In
many firms, the cohort of older workers is missing and cohorts of baby boomers are goingto retire soon. In order to retain the experience and wisdom of older employees and tocompose diverse teams, many firms are increasingly interested in retaining elderly work-ers for as long as possible – through job sharing arrangements or part-time retirement,
for example, and with the help of lifelong learning. We expect elderly workers to findmeaningful, well-paid employment at and beyond the age of 65.
Industrialized countries such as Germany or Japan have increasingly specialized within
the global division of labor into industries based on innovation and creativity. Withinthese industries, companies usually pursue high-quality strategies for which a pricemarkup can be achieved. In this sector of the economy, cross-functional teams, quality
circles and semi-autonomous teams all play an important role, and in this context, agediverse teams will be an important foundation for future competitiveness.

Demographic Change:

Not a Disaster, but an Opportunity for Japan and Germany
Axel Börsch-Supan

As populations age all over the world, fewer prime-aged people will be available to care
for larger populations of the elderly. Germany and Japan face increasing pension andmedical care expenditures, which will raise governments’ and families’ financial burdens. Higher taxation on earned income to cope with the increased financial burden of
supporting the aged runs the risk of impairing incentives to work and the willingness tolearn and qualify for employment.
Positive aging policies must tackle a three-pronged problem: pension systems, healthcare and employment for all. We cannot design a pension system without reference tohealthcare costs and to overall employment conditions, nor can we design a healthcare
system or regulations on labor markets without taking their influence on financing pensions into account. Living longer – and in particular, being healthy much longer – showswhere opportunities exist. There is no reason to be pessimistic about aging populations.
We used data from SHARE, JSTAR and other data sets to provide scientific evidence forsuccessful positive aging policies across the following areas.
1. Give highest priority to working longer than before
The most important step is to eliminate early retirement arrangements, both in public pension systems and company pension schemes, which reduce incentives for older
workers to continue working. An incremental increase in pension eligibility age, withconsideration of the physical and mental health development of the elderly over time, isalso of high relevance. In addition, it is recommended to stop reducing working hours.

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2. Encourage the willingness of employers to retain their employees as they get older
Employers should recognize the advantages of keeping aging workers with respect totheir valuable experience, know-how and know-who. In addition, employers should
realize that there is a broad variety of instruments to sustain the productivity of older
employees, such as creating an appropriate workplace environment, more flexible
working conditions – such as part-time work – and the provision of further education
for updating the capabilities and knowledge of older employees.
3. Realize that better healthcare pays partly for itself through higher productivity
Good healthcare is important for sustaining a longer working life; thus, healthcare
reform is crucial for employee productivity. Although healthcare costs have increased
due to technological progress, extended productive use of the aging workforce may
mitigate the increase in costs. There is a major equity issue at stake: the poor should
also benefit from healthcare reform and from improved medical treatments to ensure
the positive potential effects of healthcare reform comprehensively increase every
individual’s productivity in an aging economy.
4. Tackle misconceptions about aging
Informed discussions may help to fight against widely held misconceptions about
aging. For example, it is a fallacy that keeping older workers squeezes out jobs foryounger workers; there is empirical evidence that keeping older workers actuallyencourages the creation of more jobs for younger workers. It is also a misconceptionthat older workers are less productive or more prone to absence due to illness than
younger workers are.
Research, especially in international comparisons, plays an important role in providing
best practice examples and factual evidence to overcome popular myths and misconceptions about aging that stand in the way of positive aging policies. Germany and Japan
have comparable data sets from which much can be learned; in particular, we can learn
about good health and the potential of the years people have gained through longer life
expectancy and medical progress.

How Positive is Aging?
Florian Coulmas

On 1 October 2012, the United Nations Population Fund published its report on Agingin the Twenty-First Century, celebrating the International Day of Older Persons at the
UN University in Tokyo. The place was well chosen, given Japan’s high life expectancy.
The country is not alone in experiencing aging and population decline, but it is ahead of
all other OECD countries and, therefore, a reference point for research. Japan is also areference point because negative repercussions of the democratization of longevity on its
society and economy have been mild thus far.
Emphasizing positive aspects of aging is fashionable at present and understandably so; along life has always been considered desirable, and the world is growing old fast. Accordingly, lamenting the afflictions of old age is out-of-date, if not simply politically incorrect,
yet it remains difficult to imagine the realities of a society whose median age is 50 andrising. Beating the positive aging drum is thus a bit like whistling in the dark to alleviate
our uneasiness. In order to do so we can only try to shed light into the dark.
The German Institute for Japanese Studies (DIJ) has been engaged in research about
demographic changes in Japan since 2005. Initially, the focus was on the pension system
and its transformation from a contributions-funded to an increasing tax-financed system. We have also explored the low fertility crisis as a correlate of social aging. Innovative
housing arrangements, adult guardianship, communication needs of the elderly, continued employment in advanced age, product design and marketing for elderly customers
are among the topics we have addressed. This is a wide range, but only a small selectionof the multifarious ways in which aging societies come under adjustment pressure andit shows that if we want to understand the complexities of population aging and what
is positive and negative about it, interdisciplinary cooperation is inevitable. Comparing
countries with different cultural backgrounds may help, especially if the observer’s lens isfocused not only on phenomena amenable to statistical analysis, but on how individuals
deal with the opportunities and problems of a longer life. While new theories have theirvalue and importance, what people do is more important. Combining close-up observation with large-scale surveys is how DIJ continues to investigate the challenges of demographic changes.

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Patterns, Potentials and Limitations of Volunteering in an Aging Society –The Case of Germany
Marcel Erlinghagen

Most industrialized countries are facing fundamental demographic changes that are often
described as a process of societal aging. This process is caused by shrinking birth rates aswell as an increased average life expectancy and leads to significant, increasing shares ofolder people at the societal level as well as to prolonged periods of retirement on the individual level. Thus, aging societies must consider how the financial burden of societal aging
can be covered and how an aging population can contribute to reducing such costs.
Against that background, keeping older people active and productive as long as possible
is a key issue in solving problems caused by the process of aging societies. Such ideas canbe subsumed under the term “Productive Aging”. During recent years, the opportunities
of volunteering to promote productive aging processes have been discussed intensively. In
parallel, the share of older volunteers has grown remarkably during the last three decadesin Germany. Today, almost 30 % of all people aged 50 and up report volunteer activities
during the previous year. Compared with other European countries and the USA, Germany ranks in the upper third while Scandinavian countries and the Netherlands leadwith higher participation rates. Mediterranean and eastern European countries ranked at
the lower end of the distribution.
From a theoretical perspective, the individual’s decision to volunteer is influenced by atriad of determinants: (1) individual resources, (2) social context, and (3) the individual’slife course. These theoretical assumptions are broadly supported by ample empiricalevidence. There is a clear positive relationship between the type of welfare state (“social
context”) and the actual social engagement of a population. The welfare state and civilsociety are complementary phenomena. In addition, there is clear empirical evidence
that in Europe and the United States there is a strong positive correlation between education, income, employment status and health (“resources”) and the individual propensity
to volunteer. The higher the individual’s socio-economic status, the higher the individual’s propensity to volunteer. This is the case as resources like human or social capital are
important requirements not only for being successful in the labor market, but also forestablishing a volunteer career. Finally, former volunteering experiences (“individual’slife course”) are crucial for understanding why older people volunteer whether they are
retired or not.
Policymakers should consider the following findings when developing strategies toencourage older people to participate in volunteer work:1. Empirical evidence on the role of welfare state policies in promoting voluntary involvement suggests that private initiative requires public support through provision of sufficient infrastructure. Welfare states cannot and must not leave the responsibility forcivic engagement in the older population to their citizens alone.
2. Individual resources such as education and health are the main drivers of individual
social engagement. Thus, promoting education and health of the whole society willcause positive side-effects in the form of a growing share of volunteers. If we consider theimportance of former voluntary experiences for individual social engagement in later
life, it is highly likely that promoting health, education and volunteering of younger
people will lead to active elders in the future.
3. Policies aiming at increasing older people’s civic engagement should acknowledge thelimits of volunteering among older people. The promotion of unpaid productive engagement must not come at the cost of a reduced labor supply of those in their 50s and 60s.
In addition, policy measures to promote voluntary activities should avoid increasingsocietal polarization. Moreover, careful attention should be paid to avoiding conflicts
resulting from possible tensions between social expectations concerning retirees’ voluntary engagement and an individual’s personal concept of an “ideal retirement lifestyle”.
In this respect, we must bear in mind that older adults contribute to a society’s economic
prosperity not only through paid or unpaid work, but also – and in similarly importantways – by consuming goods and services. The loss of resources and abilities in the courseof the aging process may not only bring about additional societal costs, but may also bebeneficial for growth as the needs of the older population result in increasing demand
for specific new goods and services (e.g., in the medical and healthcare sectors). In summary, the appropriate model for our aging societies should thus be guided by a broader
concept of aging that encompasses both productive and consumptive elements.

Aging and Business: The Case for Corporate Social Responsibility
Florian Kohlbacher

Demographic trends have vital repercussions for the economy and society as a whole,and the question of how to cope with an aging population has at least two crucial issues
for the business world in terms of corporate social responsibility (CSR): the challengeof an aging workforce versus the challenge of aging consumers. Although CSR is hardly
discussed in relation to demographic changes as a current megatrend, the issues of age
discrimination of employees and safety aspects at the workplace are widely recognized by

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CSR experts. The issues are completely different at the level of relationships with external
stakeholders (aging consumers and customers), however.
This leads to a provocative question: is there a corporate social responsibility to develop
and provide products and services that specifically cater to the needs of older people?
The baby boomer generation is seen as a promising market because many members of thecohort have accumulated a significant amount of wealth and will soon have a lot of timeon their hands. The focus of most silver market strategies are on the “rich and young-atheart” elderly segment while the “poor and weak-of-limb” elderly are mostly neglected.
However, income and economic inequality as well as relative poverty among the elderly
are issues of rising concern in Japan.
Against this backdrop, corporate social responsibility might focus on support for older
people in their daily lives. Firms should be careful not to exclude those customers at thebottom of the income and wealth pyramid, not only because the combined total fortuneof these people is substantial, but because businesses can benefit both individuals andsociety through CSR efforts. Such an approach allows firms to be socially responsible
by contributing to individuals’ and societies’ well-being through gerontechnologies andrelated products and services. Products with adapted functionalities, smaller productsizes or servings and packages or products specifically addressing the needs and means ofpoorer people are a few examples of positive CSR efforts.

The Coming Age Storm: Are Japan and Germany in the Same Boat?
Naohiro Ogawa

Here, we compare to the maximum possible extent the Japanese case with the Germancase by drawing upon some of the major findings recently produced through an international collaborative project called the “National Transfer Accounts (NTA)”. (Both Japan
and Germany have been member countries of the NTA global program over the past several years, thus producing numerous quantitative results for inter-country comparison.)That project compares lifecycle reallocations through public and familial intergenerational transfers and asset reallocations; i.e., when income is generated and when support isneeded over an individual’s lifespan. For both Japan and Germany, it was found that elders(retirees) give more financial support than they receive, at least during early retirement.
The second half of the study focuses on the trade-off between the cost of children and thecost of elderly persons from the standpoint of generational equity. It is often hypothesized
by economists that population aging induced by reduced fertility and extended longevity

should lead to a decline in the welfare of children relative to the elderly. Whether or not
this hypothesis is valid in the contexts of Japan and Germany is examined on the basis of
NTA computational results. In Asia, the costs for children and elderly increase simultaneously. With fewer children around, it becomes more important to invest efficiently;
i.e., to maximize the educational attainment of the largest possible share of children. It
is equally important to increase employment in higher age groups. Finally, a higher life
expectancy comes with higher savings, and how this financial capital can be brought touse should be discussed.

Towards a Lifelong Active Society
Atsushi Seike

In order to cope with an aging population, it is extremely important for us to promote theemployment of older people. If older people with the will and ability to continue working
beyond the current retirement age were able to do so, this would reduce the average percapita burden created by the aging society. The increase in the number of active workers
and consumers in their old age would also be a driving force for economic growth on
both the supply and demand sides of the macro economy. For these reasons, it is important that we aim to create a “Lifelong Active Society” in which the will and ability ofolder people to continue working is fully utilized. However, the promotion of a “Lifelong
Active Society” has been hindered by obstacles created by both our social security systemand our employment practices.
The first obstacle lies in the public pension system. In particular, public pension earnings schemes significantly discourage older people from continuing to work. We need torevise our public pension system so as to reduce such negative effects. The second obstacle
can be found in the workplace. Age-related employment practices, such as mandatory
retirement and age restrictions in hiring, have prevented us from promoting the employment of older people. In order to promote the utilization of older people, we need toreform such age-related practices and also review the seniority-based wage system.
There are hopes and opportunities for promoting the employment of older people on
both the labor supply side and the labor demand side. On the labor supply side, post-war
baby boomers could become leading role models, and on the labor demand side, smalland medium-sized firms could provide opportunities for older workers as many such
firms do not have a mandatory retirement age and offer earnings profiles that are lessinfluenced by age.

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If we can produce a model aging society through our joint projects, it could become an
important tool for policy making for governments in developed countries, which are facing the same aging population problems, as well as for governments in developing countries that will eventually experience issues with aging societies. After all, the existence ofan aging population is not a failure, but rather a success of civilization.

Changing Paradigms for Roles of the Elderly in Society
Hiroshi Shibata

The concept for interaction between the elderly and society has changed drastically overthe past 30 years. In the early 1980s, the elderly were mainly regarded as recipients ofsocial support. Multiple studies demonstrated that the elderly with strong social ties and/or social support lived longer than those without such support. However, in the mid1980s, new implications for social support of the elderly emerged: deleterious social
supports might impair self-esteem and/or autonomy of the elderly. In the late 1980s, thebalance between receiving and giving social support (reciprocal exchanges of supports),
was determined to enhance subjective well-being, especially in the functionally competent elderly. This conceptual change in terms of the interaction between the elderly andsociety or other generations is considered to be intimately influenced by the concept of
productive aging that emerged in the early 1980s.
Rowe and Kahn (1997) incorporated “engagement with life” as a third component forsuccessful aging. The present “engagement with life” concept includes the contribution
to society by the elderly. It should be borne in mind that productive activities in gerontology create both formal and informal social contributions by the elderly. In April 2002,
the Second United Nations World Assembly on Aging was held in Madrid, Spain, where
4,000 delegates from 160 countries around the world gathered to discuss issues regarding
aging populations. The WHO paper for this Assembly, entitled “Active Aging: A Policy
Framework”, stated: “it is time for new paradigm, one that views old people as active
participants in an age-integrated society and active contributors as well as beneficiaries
of development”. Thus, the importance of the contribution to society by the elderly wasestablished to the entire world.
Productive activities by the elderly are not only imperative to society, but are also helpful for objective and subjective well-being for the elderly who perform such activities.
In Western countries, informal (unpaid) productive activities such as co-living arrangements and volunteering have been reported to bring about improvements in physicaland/or mental well-being for the elderly. It is of interest that with the Japanese elderly,
paid labor as well as informal activities were helpful for preventing physical and/or cognitive impairment and helped prolong life expectancies. The influence of paid labor on
well-being may vary cross-culturally. In any case, autonomy and contributions to society
are imperative for aging populations in the 21st century.

Aging and Volunteering
Masakazu Shirasawa

In a manner similar to employment, volunteering by elderly people can contribute tosociety and serve as a standpoint from which an affirmative image of older people can begenerated.
In both Germany and Japan, people become more active in volunteering activities as
they age. The participation rate of elderly people rises with their age and a peak participation rate of 30 % is reached by people in their 70s (cf. Yamauchi). This demonstrates thatelderly people make significant contributions to society, and we conclude that this eliminates the stereotypical image of the elderly as people who become less involved in society
with their decline in physical performance. It is suggested that the starting point of the“old age” category, which is defined as beginning at 65, should be raised.
Comparing volunteering activities in various European countries, we see that welfare
states such as Norway, the Netherlands, Sweden and Denmark demonstrate a higher
participation rate of elderly people taking part in volunteering activities (cf. Erlinghagen). This result rejects the hypothesis that informal care achieved by mutual cooperation of residents would decrease as national welfare services are improved. Formal care
represented by social security programs is interactive with informal care offered by fellow
residents. The evaluation shows that although a certain level of support is necessary for
elderly people if a nation promotes such social security programs, elderly people will participate in volunteering activities in greater numbers given appropriate social support.
As for the profile of those elderly people who engage in volunteering activities in Germany, the academic background, income, employment situation, health condition andsocial capital of individual elderly people have an influence on volunteering activities. In
Japan, those elderly people with more enhanced social capital, such as relationships andtrust with others, networks and participation in elections, have a greater desire to takepart in volunteering activities.

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The symposium focused on considering elderly people affirmatively, premised on those
healthy elderly people who can work and who participate in volunteering activities. In
the future, however, the number of elderly at the age of 75 or over and in need of support is expected to increase; in Japan, about 10 % of the elderly population is currently inneed of support. However, a positive aspect can be found in these people as well. Generally speaking, it is important to discover and assist the strengths and resiliency of thoseelderly people who require support. Such efforts have resulted not only in maintaining
the physical and mental condition of the elderly, but also in contributions to society
where the overall cost of social programs is thus reduced. As a result, it is important tohave discussions where all types of elderly people, not simply healthy elderly people, areconsidered in an affirmative light.

The Potential of Aging
Ursula M. Staudinger

Aging is (within biological constraints) what we make of it – this is the lesson that
research on aging teaches us. Population aging both worldwide and in Germany posesconsiderable societal challenges that need to be addressed. But given the tremendous
plasticity of the aging process, this challenge can be met and can – given that the necessary transformations are realized – improve the lives of all.
There are several remarkable examples for the plasticity of aging. The most astonishing is
the increase in life expectancy. In the past 150 years, we have gained 45 years of life, andthese are healthy years for the most part. Japan is the world record holder in life expectancy. This extension exemplifies that the same chronological age has a different meaning
now than compared to 20 years ago. What is the meaning of “80 years old” to both anindividual and to society as compared to the previous generation? Physicians tell us thatroughly an 80 years-old of 2012 is as healthy as 70 years-old of the previsous generation.
Also research demonstrates that a wide range of performance levels are observed at thesame chronological age. This casts doubt on whether dependency ratios can be meaningfully calculated in the same way for 1960 and 2013.
Longer lives and working into higher age groups brings up questions of cognitive maintenance or improvement over a lifespan. As is well known, aging is associated with cognitive decline in the mechanics of the mind; i.e., the composition of the brain and thequantity and connectedness of its neurons as it translates for example into the speed of
information processing. It is less well known, however, that there is tremendous inter-individual variability, which is a sign of developmental plasticity. The performance levelof a 70-year-old can be above the level of a 40-year-old. Moreover, the comparison ofcohorts reveals plasticity at the group and societal level. It has been shown that a decline
in cognitive mechanics can set in later in life.
Furthermore, from cohort to cohort average intelligence is improving. For example, theSeattle Longitudinal Study, which measures cognitive functioning, finds an increase of
1.5 SD across 50 years. Finally, the decline in mechanics has become less pronounced.
Better education, nutrition and health, along with training interventions, are at the rootof these positive changes. Recently, it has been shown that exercise (physical fitness) has apositive impact on cognitive functioning. Brains have been reactivated and participantsrequired less effort to reach the same result as younger age groups. Fitness interventions
actually alter brain efficiency rather than require learning strategies for specific cognitive tasks as most non-physical interventions do. Therefore fitness interventions show
improvements in cognitive functioning that generalize across different tasks.
In summary, longer lives come with different brains, and over the years, considerable
cognitive plasticity can be shown in aging cohorts. However, strategies to deal with theaging of populations must focus not only on the brain itself, but also on opportunities tomake adequate use of our brain capabilities. The formula “use it or lose it” oversimplifies
the matter; an optimal discrepancy between abilities and goals for/of a task is required
to promote enhancement. The prominent issue for dealing with longer working lives is
to apply this logic and to create work biographies that establish such challenges for aging
individuals throughout their lives.
Apart from health and cognition, other characteristics of an individual such as personality can be changed in old age. While an age-related decline in openness has beenmeasured around the globe, one also finds that this change is not a natural law. When
individuals are provided with preparatory training or are similarly empowered to address
new situations, they will master them, and from this positive experience, the desire toexperience more novelty will increase and thereby increase in openness is observed.
Plasticity implies, however, that change can also be negative if no care is taken to continue to unfold a person’s available potential; life expectancy and health may decline
rather than improve in any person’s future. As shown by multiple studies, continued
exercise and cognitive challenges as well as a healthy diet and social participation provide
a promising recipe for successful aging.
At the societal level, key targets are to remove the rather pronounced social strata
observed in healthy life expectancy, to attract the professional and volunteering contributions of older people, to build environments full of opportunities and to develop tech-

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nologies ranging from exploiting their compensatory power to their mental and physicalstimulation and training potential. Finally, positive plasticity notwithstanding, deathsets a limit and we need to find more dignified ways of moving end-of-life care out of the
shadow and into the limelight.

Volunteering and Social Capital in the Aging Society
Naoto Yamauchi, Osaka University

We would like to shed lights on the determinant factors affecting generosity in the community, namely volunteering, with particular attention to the impact of social capital on
the behavioral capacity for volunteering in the elderly population. We are interested inwhether and how volunteering as a mode of expressing private initiatives for the public
good is affected by social capital, by subjective and personal preferences and by a sense ofvalues.
We have used the unique micro-dataset collected by the National Survey on Giving andVolunteering, conducted for the quantitative and analytical part of Giving Japan 2010
and 2011. Our unique dataset makes it possible to generate variables for social capital aswell as specific figures on levels of volunteering and to test the relationship between social
capital and pro-social behavior more precisely than ever. Our empirical results demonstrate that generalized trust affects the behavioral capacity for volunteering, but that its
impact differs by activity and by respondents’ age, sex and other personal characteristics.
Our study will raise a discussion on measurement of social capital and derive appropriate
policy implications.

Hiroko Akiyama“ Living a long life has been a continuing dream of thehuman race. Longevity brings enormous benefits to individuals and to society as a whole, and we are witnessing
the dawning of a new age. All researchers’ comments havebeen similar: one must be in good health to enjoy a longer life. Compared with the thinking of the 1960s, older
people are no longer seen only as a burden and all people
must work together to create the ideal society. Japan is
an extraordinarily homogenous country; it has done wellwith that in the past, but diversity is the key these days,
and we must open our doors to different types of people.”

Ursula M. Staudinger“ With regard to human development and to creating living
conditions, our imagination is limited. We do not seem
able to imagine a society yet where all age groups are represented in similar proportions. Rather, anxiety prevails
concerning what a society with as many above 60-yearolds as below 20-year-olds might be like. We are part andparcel of fundamental historical changes. I am curious tosee what we will make of it in our various cultures. Even
though we are growing older than ever before in our history, let’s not forget that human life draws its value in partfrom its finiteness. Similarly, life loses much of its richness if the different seasons of life are not appropriately
respected.
Aging populations present a wonderful opportunity forJapan and Germany to continue to cooperate. Both ourcountries are ahead of the curve at this juncture, and weshould use this position for research as well as policymaking.”

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E ditorial Notes

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Published by:German Research and Innovation Forum Tokyo (DWIH Tokyo)
Sanbancho KS Bldg. 5F, 2-4 Sanbancho,
Chiyoda-ku, Tokyo 102-0075
Tel: +81 (3) 5276 8820

Fax: +81 (3) 5276 8733
info@dwih-tokyo.jp

www.dwih-tokyo.jp
Editorial Team:

Editing: Dr. Katja Patzwaldt, Regine Dieth, Marijke Wahlers
Design, layout and lithography: Lisa Eidt
Printed in Japan

ISBN: 978-3-942600-22-4
Tokyo, May 2013

© DWIH Tokyo

The DWIH Tokyo is jointly organized by the German Rectors’ Conference (HRK) and

the German Chamber of Commerce and Industry in Japan. It is funded by the Federal
Foreign Office of Germany and supported by the German Federal Ministry of
Education and Research.

LIST OF CONTRIBUTORSProfessor Dr. Hiroko Akiyama is a social psycholo-

Dr. Katja Patzwaldt is a member of the scientific

The University of Tokyo. In 2011, she was named Vice

Coordinator for the German National Academy ofgist and Professor at the Institute of Gerontology at
President of the Science Council of Japan.

staff at Jacobs University Bremen and Project
Sciences Leopoldina.

Professor Dr. Uschi Backes-Gellner is a Full

Professor Dr. Atsushi Seike is President of Keioand Deputy Dean at the Faculty for Business andwas Professor and Dean of the Faculty of Business

Professor of business and personnel economics

Economics at the University of Zurich in Switzerland.

University. He is a specialist in labor economics andand Commerce at Keio University.

Professor Axel Börsch-Supan, PhD is the Director

Professor Dr. Hiroshi Shibata is Dean of the(MEA) at the Max Planck Institute for Social Law and

Human Arts and Sciences. He is chairing the Societyof the Munich Center for the Economics of Aging

Social Policy. He is a member of the German National
Academy of Sciences Leopoldina and the Council ofAdvisors to the German Federal Ministry of Economics and Technology.

Professor Dr. Florian Coulmas is the Director of

the German Institute for Japanese Studies in Tokyoand Professor of Japanese Studies at the Institute of

East Asian Studies at the University Duisburg-Essen,currently on a leave of absence.

Professor Dr. Marcel Erlinghagen is a Professorof sociology at the University of Duisburg-Essen

and Research Professor at the German Institute for
Economic Research (DIW) in Berlin.

Dr. Florian Kohlbacher is a Senior Research Fellow

and Head of the Business & Economics Section at theGerman Institute for Japanese Studies in Tokyo.

Professor Dr. Naohiro Ogawa is a Professor of
population economics at the Nihon University

College of Economics and Director of the Nihon
University Population Research Institute.

Faculty of Health Sciences at the University offor Applied Gerontology (Japan) and the Gerontol-

ogy Education Subcommittee of the Science Councilof Japan.

Professor Dr. Masakazu Shirasawa is a Professor

at the Graduate School of Gerontology, J. F. Oberlin

University. He is President of the Japanese Academyof Social Welfare and a member of the Science
Council of Japan.

Professor Dr. Ursula M. Staudinger is a Professorof psychology as well as Academic Dean and Vice

President of Jacobs University Bremen. She is Vice
President of the German National Academy of

Sciences Leopoldina and a member of the IndustryScience Research Alliance, chaired by the German
Federal Ministry of Education and Research.

Professor Dr. Naoto Yamauchi is a Professor of

public economics at Osaka School of International

Public Policy (OSIPP), Osaka University. He founded
the Center for Nonprofit Research and Information
at OSIPP in 2003, and is currently serving as theCenter’s Director.

German scientific and research interests in Japan. It presents German research organizations and innovative companies in a concerted effort, thereby strengthening scientificand economic cooperation with Japanese partners. The German Research and Innovation
Forum Tokyo has been set up jointly by the German Rectors’ Conference (HRK) and theGerman Chamber of Commerce and Industry in Japan.
www.dwih-tokyo.jp

German National Academy of Sciences Leopoldina
The Deutsche Akademie der Naturforscher Leopoldina (founded in 1652) is the German

National Academy of Sciences. Independent of political or economic interests, it provides
scientific guidance on topics relevant to society to both policy makers and society atlarge. It identifies important future issues where science plays a crucial role in finding

solutions, elaborates statements and reports on urgent challenges to society and communicates results to policy makers and the public.
www.leopoldina.org/en

Institute of Gerontology, The University of Tokyo
The Institute of Gerontology of The University of Tokyo was established in April 2009 toresolve complex changes in the area of the super-aged society by creating new learning

establishments that encompass a wide range of disciplines, including medicine, nursing,science, engineering, law, economics, sociology, psychology, ethics and education. It
aims to promote gerontology and to submit evidence-based proposals for policy andsocial measures.

www.iog.u-tokyo.ac.jp

German-Japanese Symposium on Positive Aging

The German Research and Innovation Forum Tokyo (DWIH Tokyo) acts as an umbrella for

9 October 2012 | Tokyo, Japan

German Research and Innovation Forum Tokyo (DWIH Tokyo)