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The Employment and Earnings of Public Assistance Recipients and the Effects of the 2013 Reform in Japan

Author

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  • Masayoshi Hayashi

    (Professor, Graduate School of Economics/Faculty of Economics, The University of Tokyo)

Abstract

This study examines the employment and earnings of public assistance recipients in Japan, utilizing household-level data from the Survey on Public Assistance Recipients complied by the Ministry of Health, Labour and Welfare. First, we provide basic descriptive statistics on the employment of the recipients and analyze the factors that influence their decision to work. Second, we explain incentives for work in the public assistance system, with a focus on the Basic Deduction, and examine its effect on the earnings of the recipients. In particular, we examine the effect of the August 2013 reform of the Basic Deduction using descriptive statistics as well as panel regression based on an event-study design.

Suggested Citation

  • Masayoshi Hayashi, 2023. "The Employment and Earnings of Public Assistance Recipients and the Effects of the 2013 Reform in Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 19(4), pages 1-29, October.
    • Handle: RePEc:mof:journl:ppr19_04_06
    DOI: 10.57520/prippr.19-4-6
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    More about this item

    Keywords

    public assistance; work incentives;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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