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Paper short abstract:

Since the year 2009, after a period of neo-liberal turn, a new child allowance policy was enacted in Japan. It aimed to make the Japanese policy system more effective in reducing deprivations. My goal is to analyse the impact of this policy on child poverty using a quasi-experimental analysis.

Paper long abstract:

Since the year 2009, after a period of neo-liberal turn in Japan, a set of more comprehensive and universal social policies were enacted by the Democratic Party of Japan. These policies were established to increase low socio-economic inclusion and to tackle poverty, which were exacerbated by policy changes of the Koizumi Government. These policies also aimed at making the Japanese social security system and the public employment system more effective in reducing and preventing deprivations. My goal is to analyse the impact of the modification of the child allowance which occurred in 2010, during the Democratic Party of Japan government period, on child life dimensions. This policy modification is interesting as it broadened both the number of beneficiary families and the amount of the benefits delivered to families. In fact, compared to the previous child allowance, this policy had a universal structure and it transferred 13,000 yen to households each month. Specifically, my aim is to analyse the impact of child allowance on different aspects of child life dimensions, such as gross family income, health and an index of multidimensional poverty. I also attempt to inspect the effect of this policy on child inequalities. This analysis is interesting as it can indicate counteracting actions of this amended policy on two big issues in Japan, mounting inequalities and increasing child poverty. As for my research plan, first I inspect the effect of the new child allowance on single child dimensions and on an index of multidimensional poverty. Afterwards, I analyse the impact of this policy on single child inequalities and on an index of child multidimensional inequality. This empirical analysis uses the Luxembourg Income study database. Moreover, it employs a quasi-experimental analysis that applies a propensity score methodology and a difference-in-difference technique. Finally, I include a robustness analysis to inspect whether the outcome of my empirical investigation suggests some causal impact. Further, I use the year 2008 as baseline period and the year 2010 as impact estimation period. As for variable selection, I use the Burchardt-Vizard framework, which focuses on dimensions related to human rights. Regarding the expected outcomes: this empirical analysis should have positive results on both child non-economic and economic freedoms as well as on the related inequalities over time. In fact, the universal structure of this policy and the level of transfers to recipient families should generate a widespread impact on social exclusion and capabilities.