The purpose of this article is to assess the effectiveness of family policies in Japan which aim to raise both fertility and children's well-being. International comparison shows that Japan ranks below the OECD average in terms of the access to licensed childcare services as well as public spending on families, resulting in a trade-off between family and work for Japanese women. It is recommended that the government should put more emphasis on in-kind benefits, rather than in-cash benefits such as newly-introduced "Child Allowance," to child-rearing families.