This paper analyzed the factors that influence the changes in social welfare expenditures of 228 lower-level local governments from 2008 to 2010. Also, regional disparities in demographic and public financial elements were made by measuring Coulter's index of distributional inequity. The multiple regression analysis showed that both demographic and public financial elements largely influenced social welfare expenditures. At the annual cross section analysis, the size of social welfare expenditures was shown to be commonly influenced by the number of the disabled and low-income households and the local tax level. The decentralization tax and upper-level government subsidies were likely to have influenced the size of social welfare expenditures. At the multi-year rate of change analysis, the rate of changes in the size of social welfare expenditures were shown to be affected by the rate of changes in numbers of low-income households, the elderly, and upper-level government subsidies. Disparities in public financial elements such as the decentralization tax, the local tax, and upper-level government subsidies were analyzed to be generally larger than disparities in demographic elements. Among demographic elements, disparities in the number of registered foreigners and low-income households were shown to be larger than others. Improvement of calculation criteria of welfare spending and expansion of differential rate of subsidies and block grants can be considered to reduce regional disparities or to meet more effectively welfare needs.

This paper analyzed the factors that influence the changes in social welfare expenditures of 228 lower-level local governments from 2008 to 2010. Also, regional disparities in demographic and public financial elements were made by measuring Coulter's index of distributional inequity. The multiple regression analysis showed that both demographic and public financial elements largely influenced social welfare expenditures. At the annual cross section analysis, the size of social welfare expenditures was shown to be commonly influenced by the number of the disabled and low-income households and the local tax level. The decentralization tax and upper-level government subsidies were likely to have influenced the size of social welfare expenditures. At the multi-year rate of change analysis, the rate of changes in the size of social welfare expenditures were shown to be affected by the rate of changes in numbers of low-income households, the elderly, and upper-level government subsidies. Disparities in public financial elements such as the decentralization tax, the local tax, and upper-level government subsidies were analyzed to be generally larger than disparities in demographic elements. Among demographic elements, disparities in the number of registered foreigners and low-income households were shown to be larger than others. Improvement of calculation criteria of welfare spending and expansion of differential rate of subsidies and block grants can be considered to reduce regional disparities or to meet more effectively welfare needs.