Options to Strengthen the Social Safety Net in Japan: Japan
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.
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Volume/Issue:
Volume 2023
Issue 033
Publication date: May 2023
ISBN: 9798400242380
$15.00
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Topics covered in this book
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Labor , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Taxation - General , International - Economics , Poverty and Homelessness , Social safety net , working poor , inequality , public assistance , in-work benefits , Earned Income Tax Credit (EITC) , Japan , program in Japan , public assistance program , Japan's poverty rate , Japan's unemployment rate , EITC program , Income , Wages , Employment , Social assistance spending , Income tax systems
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.
