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The effects of employment support programs on public assistance recipients: The case of a Japanese municipality program

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  • Matsumoto, Kodai

Abstract

In Japan, the number of households targeted by employment support programs has increased rapidly since the Great Recession of 2008. This study analyzes whether these programs induce public assistance recipients to work. Drawing on a unique dataset for a representative Japanese municipality X, I estimate the program effects by using propensity score matching to address the selection bias. The analysis reveals several important findings. First, the programs raise the welfare recipients’ employment rate. Second, lock-in effects are not significantly observed in most cases. Third, the effects of the programs are not large enough to allow beneficiaries to get off welfare through employment. Finally, there is no substantial difference in the results pre- and post-matching.

Suggested Citation

  • Matsumoto, Kodai, 2022. "The effects of employment support programs on public assistance recipients: The case of a Japanese municipality program," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:jjieco:v:63:y:2022:i:c:s0889158321000654
    DOI: 10.1016/j.jjie.2021.101186
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    1. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
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    5. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    6. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    7. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    8. Huber Martin & Lechner Michael & Wunsch Conny & Walter Thomas, 2011. "Do German Welfare-to-Work Programmes Reduce Welfare Dependency and Increase Employment?," German Economic Review, De Gruyter, vol. 12(2), pages 182-204, May.
    9. Melvin Vooren & Carla Haelermans & Wim Groot & Henriëtte Maassen van den Brink, 2019. "The Effectiveness Of Active Labor Market Policies: A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 33(1), pages 125-149, February.
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    1. André D. Tsambou & Thierno Malick Diallo & Benjamin Fomba Kamga & Simplice A. Asongu, 2023. "Impact of Employment Support Programs on the Quality of Youth Employment: Evidence from Senegal's Internship Program," Working Papers 23/079, European Xtramile Centre of African Studies (EXCAS).
    2. André Dumas Tsambou & Lionie Mafang & Thierno Malick Diallo & Benjamin Fomba Kamga, 2024. "Impact of job training program on employment outcomes in Senegal," SN Business & Economics, Springer, vol. 4(8), pages 1-33, August.

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    More about this item

    Keywords

    Propensity score matching; Program evaluation; Public assistance; Active labor market program; Lock-in effect;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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