Japan has a similar system that isn't even sanctioned by the government. It's created an entire generation of young people who have dropped out of society.
I recommend the book "Shutting Out the Sun: How Japan Created Its Own Lost Generation" by Michael Zielenziger. The main topic is Hikikomori, a group of (mostly young, mostly male) Japanese people who, unable to handle to immense pressure to conform to Japanese society, shut themselves in their rooms 24/7 and depend on their parents.