Female Labor Supply, Social Security, and Fiscal Consolidation

Ryuta Kato and Masumi Kawade ()
Additional contact information
Masumi Kawade: Nihon University

Chapter Chapter 3 in The Political Economy of Fiscal Consolidation in Japan, 2015, pp 69-93 from Springer

Abstract: Abstract This paper numerically examines the impact of expanding female labor supply on economic growth and the government revenue in an aging Japan within a dynamic general equilibrium framework with multi-period overlapping generations. The difference in full-time and non full-time workers of both male and female labor force is explicitly considered. Simulation results indicate that even if all potential female labor force who cannot work currently due to child care becomes full-time workers and thus labor force in efficiency is most expanded, the impact of such an increase on the Japanese economy and fiscal consolidation through an increase in tax revenue as well as contributions to the public pension scheme is very much limited. Even in the most expanding case, production only increases by 1.50 % and the improvement in the government budget would be 1.34–1.46 % in year 2050. The most crucial reason of such limited impacts is found in the large gap in the wage profile between male and female workers, and if the gap vanishes, the impact drastically becomes quite large.

Keywords: Computable general equilibrium (CGE) model; Economic growth; Female labor supply; Fiscal consolidation; Public pension; Simulation (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advchp:978-4-431-55127-0_3

Ordering information: This item can be ordered from
http://www.springer.com/9784431551270

DOI: 10.1007/978-4-431-55127-0_3

Access Statistics for this chapter

More chapters in Advances in Japanese Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().