The effects of employment support programs on public assistance recipients: The case of a Japanese municipality program

Abstract

In Japan, the number of households targeted by employment support programs has increased rapidly since the Great Recession of 2008. This study analyzes whether these programs induce public assistance recipients to work. Drawing on a unique dataset for a representative Japanese municipality X, I estimate the program effects by using propensity score matching to address the selection bias. The analysis reveals several important findings. First, the programs raise the welfare recipients’ employment rate. Second, lock-in effects are not significantly observed in most cases. Third, the effects of the programs are not large enough to allow beneficiaries to get off welfare through employment. Finally, there is no substantial difference in the results pre- and post-matching.