Why Is It So Hard to Escape Poverty When You’re Born into a Poor Family? Explaining the Cycle of Poverty

In recent years, terms like “child poverty” and “the cycle of poverty” have become increasingly common in Japan.
Many people wonder, “Can’t things work out if you just try hard enough?”

In this article, we’ll explain—based on official statistics and survey results—the mechanisms that make it difficult for children born into low-income families to escape poverty. We’ll examine the “invisible disparities” that go beyond
mere financial issues and affect education, higher education, employment, and future life prospects.

What Is Child Poverty?

“Poverty” does not simply mean “not having food” or “not having a place to live.”

A commonly used indicator in Japan is “relative poverty.”
This refers to a state in which a person’s lifestyle choices are significantly limited when compared to the overall income level of society.

According to a survey by the Ministry of Health, Labor, and Welfare, the relative poverty rate among children in Japan is 11.0 percent, meaning that approximately one in nine children lives in poverty. Based on a class size of 35 students, this translates to about four children per class.

Furthermore, this poverty is often difficult to detect from the outside. Even though these students wear
uniforms to school and, at first glance, appear to lead normal lives, it is not uncommon for their families to be struggling to cover the costs of higher education and daily living expenses.

What Is the Cycle of Poverty?

The cycle of poverty refers to the phenomenon in which the economic hardships experienced by one generation are passed down to the next. The
typical process is as follows.

1. The household has a low income
2. Fewer opportunities for learning and hands-on experience
3. Fewer options for further education
4. Limited job options
5. Income is slow to grow
6. The next generation will face the same circumstances

The major problem is not that the individual isn’t trying hard enough, but that there is a disparity in their starting points in life.

The Three Barriers That Create the Cycle of Poverty

1. The Barrier of Educational Inequality

Since Japan has compulsory education, people often assume that “if you can go to school, isn’t that equality?”
However, in reality, there are costs beyond school, such as the following.

• Reference Books
• Practice Test
• Tutoring Center
• Computer
• Exam Fee
• Transportation expenses

According to the survey, there is a significant gap in the percentage of second-year middle school students who attend cram schools, as shown below.

Household Income Status	Percentage of Second-Year Middle School Students Who Attend Cram Schools
High-Income Households	56.4%
Low-income families	28.7%

While attending a cram school doesn’t necessarily guarantee improved academic performance, there is a significant difference depending on whether or not students have the option to attend one.

Differences in Expectations Regarding Higher Education

According to a survey by the Cabinet Office, the percentage of parents who believe their children will go on to attend college or a higher-level institution is as follows.

• High-income households: 67.2%
• Low-income households: 25.9%

The subjects of this survey are second-year middle school students.
Even at this stage, when their future potential has not yet been determined, significant differences have already emerged in their expectations and outlooks regarding further education. In other words, even
before considering academic ability, there are differences in whether they believe they can aim for college.

2. The Hurdle of Household Budget Constraints

For low-income families, covering daily living expenses (rent, food, utilities, communication costs, medical expenses, etc.) takes priority over education expenses.

Even if you’re saving for the future, when you face illness, broken appliances, or unexpected expenses, you’ll have no choice but to use that money.
As a result, it becomes difficult to set aside funds for education or self-improvement.

Poverty That Can Occur Even When Parents Are Working

There is a common misconception that “parents should just work harder,” but in reality, there are families whose income is insufficient even when they work as hard as they can.

When work hours are long or irregular, you end up short on the following:

• Time Spent Helping Children with Their Schoolwork
• Collaboration with Schools
• Time for Gathering Information

The problem isn’t a lack of effort, but rather a “lack of available time and flexibility.”

3. Obstacles Faced as an Adult

The effects of educational disparities continue into adulthood.
The differences in average salaries found in the survey are as follows.

• Average Salary for High School Graduates: Approximately 297,200 yen
• Average Salary for College Graduates: Approximately 396,300 yen

*While some high school graduates succeed and some college graduates struggle—and this doesn’t apply to everyone—the key question is whether they were able to choose that path.

Economic Disparities in Access to Higher Education

Although scholarship and financial aid programs have become more robust in recent years, they alone are not enough to solve the problem.

• Average cost of preparing for college entrance exams: 303,000 yen
• Average first-year tuition and fees at private universities: Over 1.47 million yen

A survey of high school students from low-income families found that 71 percent of them had narrowed their choices down to just one school. While students from families with greater
financial resources can apply to multiple schools, the number of opportunities they have to take on this challenge at the application stage differs significantly.

Why Scholarships Alone Aren’t Enough

Even with support such as the New Higher Education Support System, the maximum amount of financial aid is approximately 1.61 million yen, compared to the annual expenses (averaging about 2.4 million yen) incurred by students who live in off-campus housing while attending private universities.

The annual shortfall of approximately 800,000 yen must be covered through part-time jobs, financial support from family, and loan-based scholarships, and it is not uncommon for students to be saddled with substantial debt even after graduation.

The Existence of “Experiential Inequality”: An Invisible Form of Inequality

Attention is being focused not only on money and education but also on the “experience gap.”
“Experience” here refers to activities such as extracurricular lessons, sports, travel, cultural activities, and community involvement.

The percentage of children who had absolutely no experiences outside of school over the past year is as follows.

• Households with an annual income of 6 million yen or more: 11.3%
• Households with an annual income of less than 3 million yen: 29.9%

The confidence, network of contacts, and sense of accomplishment gained through these experiences can lead to a drive to take action in the future; however, there are quite a few children who give up on even expressing their desire to do something simply because of financial constraints.

A reality that can’t be explained by hard work alone

This issue does not “deny the value of hard work.” In fact, there are people who do manage to escape poverty.

However, even if the same amount of effort is expended, the following conditions differ.

• Available Time
• Number of Attempts
• Learning Environment
• Support from Others
• Outlook for the Future

Because conditions vary, differences in outcomes are likely to arise, and poverty cannot be explained solely by the presence or absence of effort.

Summary | Breaking the Cycle of Poverty

The cycle of poverty is not simply a matter of a lack of money; it involves a complex interplay of factors such as educational opportunities, options for further education, life experiences, relationships, and free time.

[Key Points of This Article]

• Differences in expectations regarding further education are already emerging at the middle school level.
• It's not just money that's lacking—it's also time and the freedom to take on new challenges.
• Although support programs exist, they are not sufficient, and many challenges remain.

To break the cycle of poverty, it is essential to have not only individual effort but also society-wide initiatives, such as educational support, financial assistance, and opportunities for hands-on experience.
Isn’t the first step toward a solution to accurately understand the realities that are not apparent when relying solely on the belief that “anyone can succeed if they try hard enough”?