Why women work the way they do in Japan: Roles of fiscal policies

Sagiri Kitao and Minamo Mikoshiba

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: Women work less often and earn significantly less than men in Japan. We use panel data to investigate employment and earnings dynamics of single and married women over the life-cycle and build a structural model to study the roles of fiscal policies in accounting for their behavior. We show that eliminating spousal deductions, social insurance premium exemptions and survivors’ pension benefits for low-income spouses would significantly raise the labor supply of women and their earnings. More women would opt for regular jobs rather than contingent jobs, accumulate more human capital, and enjoy higher income growth. The government would earn higher net revenues and there is a welfare gain when additional taxes are transferred back.

Keywords: Female labor force participation; life-cycle; human capital accumulation; spousal deductions and exemptions; survivors’ benefits; two-tiered employment system; Japan (search for similar items in EconPapers)
JEL-codes: D15 H2 H31 J22 J24 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2022-03
New Economics Papers: this item is included in nep-dem, nep-dge, nep-ias and nep-lma
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Citations: View citations in EconPapers (2)

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Working Paper: Why Women Work the Way They Do in Japan: Roles of Fiscal Policies (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2022-21

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