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Vol. 61, No. 2, pp. 137-153 (2010)

“A Micro-Simulation of Effects on Households of Introducing Child-Care Benefits -Using Data of Japan Household Panel Survey (JHPS)-”
Takero Doi (Faculty of Economics, Keio University)

In this paper, we examine a micro-simulation of income taxation, using the household income data of 2008 obtained in the first survey of the Japanese Household Panel Survey (JHPS) performed by the Keio University Joint Research Center for Panel Studies in January 2009. We also analyze the policy effect of the child-care benefit introduced by the Hatoyama Administration.
The result of this paper are first, it was verified that there is progressivity and high rate of income deduction in the present income tax system, and that tax base is becoming smaller, due to income deduction in current income tax system. Second, our micro-simulation demonstrates that provision of child-care benefit produces nets benefits for low-to middle-income earners.