Theoretical Issues for the Integral Reform of Minimum Wage Regulation and the Social Security System: The implications from the experience of the United Kingdom on the National Minimum Wage, Working Tax Credit, and Universal Credit

An "alternative" to support life either by "labor" or "social security" has been traditionally premised about working-age households in Japan. However, with the increase in the number of irregular workers, a policy to fill the gap between them has been urgently needed. The issues are (1) to reconsider the role of the minimum wage regulation and (2) to achieve its effective coordination with the social security system. First, I examine a theoretical background and the characteristics of the National Minimum Wage (NMW) in the United Kingdom in regards to (1). Furthermore, I examine the relations with the NMW and the Working Tax Credit in regards to (2). These examinations show that "work" is the key concept to their integral reform. In the latest reform, various main welfare benefits to the working-age household are unified by a Universal Credit, and it is found that duty to work is more emphasized than before. Finally, I draw some implications to the system reform of Japan in the future.