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Do Central-Government Grants Affect Welfare Caseloads? Evidence from Public Assistance in Japan

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  • Masayoshi Hayashi

Abstract

This study examines the existence of a loosening effect of central funding on a local social policy by exploiting a specific mechanism in the Japanese system of central grants and two institutional changes in categorical grants for local social assistance programs. Despite performing various types of estimations, we fail to substantiate the existence of the loosening effect. This result indicates the dominance of central control over local discretion in public assistance programs, and suggests that important factors are administrative rather than fiscal.

Suggested Citation

  • Masayoshi Hayashi, 2019. "Do Central-Government Grants Affect Welfare Caseloads? Evidence from Public Assistance in Japan," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 75(2), pages 152-186.
    • Handle: RePEc:mhr:finarc:urn:doi:10.1628/fa-2019-0001
    DOI: 10.1628/fa-2019-0001
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    Cited by:

    1. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

    welfare caseloads; social assistance; fiscal transfers; Japan;
    All these keywords.

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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