Options to Strengthen the Social Safety Net in Japan: Japan
May 18, 2023
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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, in-work benefits, Income, Income tax systems, inequality, 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
Pages:
16
Volume:
2023
DOI:
Issue:
033
Series:
Selected Issues Paper No. 2023/033
Stock No:
SIPEA2023033
ISBN:
9798400242380
ISSN:
2958-7875
