EIJS Working Paper Series,
Stockholm School of Economics, The European Institute of Japanese Studies

Abstract: Since the 1990s, Japan has faced economic decline and demographic challenges. In response, the government has implemented pro-natalist and pro-family policies to solve the issue. A prominent discourse surrounding these policies, however, attributes demographic changes to the LGBTQ+ community. Contrary to this belief, the following article explores the economic benefits of LGBTQ+ inclusive social policies in Japan, emphasizing that such measures are not only a humanitarian necessity but also align with the country’s economic self-interest. This article argues that strengthening LGBTQ+ rights and creating an inclusive society can contribute to economic growth, higher work performance, and improved foreign direct investment (FDI). Highlighting areas such as anti-discrimination laws, same-sex marriage, assisted reproductive treatment, and Comprehensive Sexuality Education (CSE), the article advocates for legal reforms and policy measures to promote LGBTQ+ rights and, in turn, positively influence Japan’s economic landscape and societal well-being.

Keywords: LGBTQ+ right; social policy; economic development; economic policy; creative class; demographic challenges; human rights; FDI; Japan

JEL-codes: F21; J13; J16; J24; J71; J78

Language: English

15 pages, February 1, 2024

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