Financing of Early Childhood Care and Education in Japan

Abstract

This paper provides an overview of financing mechanisms for Early Childhood Care and Education (ECCE) in Japan. It also explores the differences in the level and mechanisms of funding for public and private ECCE facilities, as well as the differences in the level of public funding by prefecture. It shows that there are differences in the level of public funding per child, as well as household financial burden, among the different types of ECCE services. This may result in an inequality in the quality of ECCE services to which children have access. Although the government has made significant efforts to mitigate the gaps by combining various financing mechanisms, it is difficult to change the overall trend, which stems from the low level of government commitment to ECCE.