Comparative Gender Analysis of the Net Burden of Tax and Social Security Contributions, with a Focus on Japan

Abstract

This article presents a comparative analysis of the net burden of tax and social security contributions from a gender perspective, in order to clarify characteristics of Japan’s livelihood security system related to relative poverty. Poverty is not only serious for directly afflicted persons, but also creates problems for better―off people since it weakens social stability and undermines economic growth. Since the concept of relative poverty has been criticized for various drawbacks, we will check its relevance. After considering functions of various welfare efforts of the public and private sectors outside of public social expenditure, we examine the recent relationship between the extent of government welfare programs and poverty rate in OECD countries. Given that Japan’s poorest 20％ receives relatively smaller benefits and bears heavier burdens, it is not surprising that this group exhibits stronger tax resistance than better―off groups. Japan’s single parents are treated poorly by the country’s tax and social security schemes. While transfers and services are seen as more important than the tax mix in reducing income inequality, the effects of progressive direct taxation for mitigating poverty should not be underestimated. This article concludes by drawing some policy implications from the full plenary session.