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Does More Female Labor Supply Really Save a Graying Japan?

Ryuta Kato ()

No EMS_2017_04, Working Papers from Research Institute, International University of Japan

Abstract: This paper examines the impact of stimulated female labor supply on the Japanese economy as well as the government fiscal imbalance within a numerical dynamic general equilibrium model with multiple overlapping generations, particularly by paying attention to females' time costs of child rearing and elderly care in a graying Japan. Several numerical results indicate that even complete elimination of females' time costs of child rearing and elderly care stimulates the total GDP only by 1 percent. If complete elimination of time costs occurs in accordance with no gender gap in wage profiles, then the total GDP expands by 4 percent. The results also suggest importance of government policies not only to stimulate female labor force participation but also to improve human capital accumulation of females to reduce a gender gap in wage profiles.

Keywords: Female Labor Supply; Childcare; Child Allowance; Elderly Care; Public Pension; Long-Term Care Insurance; Population Aging; Japan; Simulation (search for similar items in EconPapers)
JEL-codes: C68 H51 E62 H55 J16 (search for similar items in EconPapers)
Pages: 107 pages
Date: 2017-09
New Economics Papers: this item is included in nep-age, nep-cmp, nep-dem, nep-dge, nep-gen and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:iuj:wpaper:ems_2017_04

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