Options to Strengthen the Social Safety Net in Japan: Japan

May 18, 2023

Preview Citation

Format: Chicago

Zhiyong An, and Kohei Asao. Options to Strengthen the Social Safety Net in Japan: Japan, (USA: International Monetary Fund, 2023) accessed December 21, 2024

Summary

Japan’s unemployment rate remains relatively low compared to other OECD countries. However, Japan’s poverty rate among the working-age population is one of the higher ones among OECD countries. The public assistance program in Japan does not provide adequate income support for the working poor and creates inherent work disincentives. In this context, the Earned Income Tax Credit (EITC) warrants consideration to strengthen the social safety net and relieve poverty of the working poor in Japan. This paper provides an overview of the theoretical and practical issues of EITC, aiming to support its potential introduction in Japan.

Subject: Employment, Expenditure, Income, Income tax systems, International organization, Labor, Monetary policy, National accounts, Social assistance spending, Taxes, Wages

Keywords: Earned Income Tax Credit (EITC), EITC program, Employment, Income, Income tax systems, Inequality, In-work benefits, Japan, Japan's poverty rate, Japan's unemployment rate, Program in Japan, Public assistance, Public assistance program, Social assistance spending, Social safety net, Wages, Working poor

Publication Details

Pages:

16
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/033
Stock No:

SIPEA2023033
ISBN:

9798400242380
ISSN:

2958-7875

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