Can Women Save Japan?

Abstract

Japan's potential growth rate is steadily falling with the aging of its population. This paper explores the extent to which raising female labor participation can help slow this trend. Using a cross-country database we find that smaller families, higher female education, and lower marriage rates are associated with much of the rise in women's aggregate participation rates within countries over time, but that policies are likely increasingly important for explaining differences across countries. Raising female participation could provide an important boost to growth, but women face two hurdles in participating in the workforce in Japan. First, few working women start out in career-track positions, and second, many women drop out of the workforce following childbirth. To increase women's attachment to work Japan should consider policies to reduce the gender gap in career positions and to provide better support for working mothers. This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Women, Work, and the Economy: Macroeconomic Gains from Gender Equity

“…In Japan, for example, deregulation should be a key element of a strategy to increase the availability of childcare and FLFP (Steinberg and Nakane, 2012). Based on simulation studies for the United States and South Africa, Anatonopoulos and Kim (2011) argue that job creation in child and elderly care can increase female labor force participation by reducing the burden of unpaid work for women and girls and expanding income earning options for women.…”

“…For example, in Japan, the annual potential growth rate could rise by about ¼ percentage point if the female labor participation rate were to reach the average for the G7 countries, resulting in a permanent rise in per capita GDP of 4 percent, compared to the baseline scenario (IMF, 2012c). Higher female work force participation would also result in a more skilled labor force, in view of women's higher education levels (Steinberg and Nakane, 2012).…”

“…IMF analysis and advice with regard to fiscal policies can take into account the potential gender-specific impact of measures (Steinberg and Nakane 2012). In particular, the IMF can assist its members in reviewing tax codes to identify and remove provisions that discriminate 23 See Appendix 1 for a list of IMF work on gender-related issues in addition to specific references in this Staff Discussion Note.…”

Decades not Lost, but Won: Increased Employment, Higher Wages, and More Equal Opportunities in the Japanese Labour Market

“…However, earlier evidence for a significant impact of government policies on female labour market participation rates, both in regular and in non-regular employment, e.g., Yamada (2011), should be regarded with some skepticism in the light of more recent research (Steinberg 2012). The second explanation refers to the so-called "household assistance effect" (also known as the "Douglas-Arisawa Law"), stating that the probability of a wife's labour market participation is negatively correlated with the husband's income level.…”

On the Relationship between Globalisation and the Economic Participation of Women in Sub-Saharan Africa

“…The selection of additional control variables is mainly influenced by consensus in literature on some of the factors that determine EPW. For example, we control for real GDP per capita (PPP adjusted); average years of schooling for population that are over 15 years old (see Eckstein & Lifshitz, 2009;Steinberg & Nakane, 2012); fertility rate (see Bloom et al, 2009;Mishra & Smyth, 2010); and the type of political institution of the country, measured as democratic freedom (see Efobi et al, 2016). These control variables are assumed to be conservatively related to the determinants of EPW.…”