The Welfare State in Japan

Can Japan be classified as a welfare state? If so, why and how? Both experts on Japan and welfare state students have asked this question. In Varieties of Capitalism (VoC) literature, Japan is classified as one of firm-specific coordinated market economies. However, according to welfare state classification a la Esping-Andersen, locating Japan among the three worlds of welfare capitalism is difficult. This chapter attempts to explore this ambiguity by examining the relevant historical developments in Japan. It demonstrates how Japan started to emulate German model but learned also from the Nordic approaches to construct eclectic and unique welfare state. This welfare state also complements the firm-specific coordinated market economy of Japan. It also argues that one important characteristic of the Japanese welfare state is the general welfare provided through work and that welfare policies in a narrower sense are not sufficient to understand the overall welfare provided to the Japanese. We need to examine not only the welfare regime but also the employment regime. This chapter concludes by referring to the recent changes in employment regime and political institutions and how they affect the welfare regime.