Transforming a Day-Laborer’s Quarter into a Service Hub

An analysis of the case of Kotobuki in Yokohama, Japan

Hiroshi Ito (Nagoya University of Commerce and Business) & Chisato Igano (J. F. Oberlin University)

Man walking down an empty city street in Japan in the rain

This study analyzes the transformation of Kotobuki in Yokohama, Japan, from a day laborers’ quarter to a service hub using public choice and neo-Hegelian theories. It aims to address gaps in understanding the role of city government in welfare provision, which has often been overshadowed by the focus on civil society’s contributions. By conducting in-depth interviews with city government officials and civil society personnel, the study explores Kotobuki’s unique evolution into a welfare center through the lenses of these analytical frameworks.

Economic globalization has pressured companies to reduce labor costs by employing contingent workers, such as temporary and day laborers. This has led to financial instability and homelessness among these workers, as seen in places like Skid Row in Los Angeles. Similarly, in Japan, yosebas (day laborers’ quarters), such as Kotobuki, San’ya in Tokyo, and Kamagasaki in Osaka, have faced significant challenges due to shrinking labor markets and aging populations. Kotobuki and Kamagasaki have developed as service hubs, providing concentrated clusters of community services to support vulnerable populations. These service hubs help prevent marginalization and promote socio-spatial justice. However, they face challenges like local opposition, gentrification, and critiques of managing, rather than solving, homelessness and poverty.

Public choice theory integrates economics and political science to analyze decision-making in the public sector. It often suggests that government actions are driven by self-interest. However, the case of Kotobuki challenges this theory, showing that motivations beyond self-interest, such as altruism and social justice, also play a role. The neo-Hegelian perspective provides a more nuanced understanding of the interplay between self-interest and collective good.

Civil society organizations have been crucial in Kotobuki’s transformation. For example, the Kotobuki Day Laborers’ Union successfully negotiated with the city government to allow homeless individuals to apply for livelihood protection without a fixed address. This has helped to make Kotobuki a hospitable place for welfare recipients, attracting former day laborers and other vulnerable individuals. The city government of Yokohama introduced unique welfare measures, such as bread and lodging coupons, which provided temporary relief for those in need. These coupons were abolished in 2012 due to financial constraints and misuse. The city government’s efforts, alongside proactive civil society organizations, have made it easier for individuals to receive public assistance in Kotobuki. Also, doya (flophouse) owners in Kotobuki have voluntarily remodeled their facilities to accommodate elderly and disabled welfare recipients. This contrasts with other yosebas, where such inclusive infrastructure developments are less common. The compact nature of Kotobuki, with concentrated welfare facilities, further supports its residents.

Despite Kotobuki’s success, challenges like gentrification and the need for adequate welfare services persist. Gentrification risks displacing vulnerable communities, while maintaining access to healthcare, education, and jobs is crucial. Policymakers should combine self-interest with moral imperatives to create fairer welfare policies. Utilizing local resources and public-private partnerships can enhance social welfare and alleviate poverty. These partnerships can provide innovative solutions and funding, fostering resilient support systems. A balanced approach, prioritizing both economic development and social justice, is essential for the sustainable success of welfare initiatives in Kotobuki.

The Kotobuki case offers insights into revising public choice theory by incorporating moral motivations and empathy. It suggests a shift from traditional economic rationality to a more complex understanding of motivations in the public sector. The study also highlights the importance of proactive civil society organizations in advocating for transformative policies and services. The transformation of Kotobuki into a welfare service hub demonstrates the interplay between city government actions and civil society initiatives. The case study challenges traditional public choice theory, showing that a combination of self-interest, altruism, and social justice can drive effective welfare policies. The findings offer lessons for other urban areas seeking to enhance social welfare and address urban poverty.

Read the full UAR article here.


Hiroshi Ito is a professor at the Graduate School of Management, the Nagoya University of Commerce and Business. He received his MA from Columbia University, and his PhD from the University of California, Los Angeles, his MBA from the Université Paris I Pantheon-Sorbonne, and his PhD in Environmental Studies from Nagoya University. He worked as an education expert for UNESCO (France), UNICEF (the Philippines), JICA (Ecuador and Paraguay), an NGO (Guatemala), and others.

Chisato Igano is a lecturer at College of Global Communication at J. F. Oberlin University. She holds a master’s degree in Peace Education from United Nations Mandated University for Peace. She has worked for the Japan International Cooperation Agency and HIS International Tours. She has published articles in journals such as Journal of Urban Affairs and Journal of Geography in Higher Education.

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