Youth Debt and Its Implications for Policy

Abstract

In addition to the surge in household debt, various indicators have been identified that youth debt, in particular, is increasing steeply. The government recognized the seriousness and announced measures. However, it is difficult to say that the measures in the making are comprehensive enough. Any workable set of comprehensive measures should be based on statistics and surveys on youth debt,, but related data integration has not been carried out at this time. Temporary measures without accurate diagnosis and analysis can make matters worse, so it is urgent to prepare measures based on sound evidence. In particular, economic problems within the youth generation can have different effects depending on gender, housing, jobs, health, family, region, and education level, so it is important to understand the differences and design customized support policies. In addition, the effectiveness of the policy can be ensured when individual support is combined with measures to reduce factors that generate debt. It is necessary to proceed with a long-term and continuous stance in that solving the youth debt problem is connected to social structural changes and points of change in perception of finance beyond the problems of individual youth.