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Labor Force Participation Rate in Japan

Author

Listed:
  • Hiroshi Kawata

    (Bank of Japan)

  • Saori Naganuma

    (Bank of Japan)

Abstract

Although Japan's labor force participation rate has declined in recent years, the rates of participation among different age and gender groups show various patterns. We overview some of those developments and examine the determinant factors of labor supply from cyclical as well as structural perspectives. From the cyclical perspective, we find that younger and elderly males gave up looking for work due to the recession after the collapse of Lehman Brothers (a phenomenon known as the"discouraged worker effect") and therefore the labor force participation rates of those categories declined. On the contrary, the labor force participation rate of females around 30 years old was firm, since spouses entered job markets to support households' income following the decline in the husbands' income (known as the"household assistance effect"). From the structural perspective, our empirical analysis suggests that population aging puts downward pressure on the aggregate labor force participation rate in the long run. Female labor force participation rates, however, were relatively stable, since carrier opportunities for females have expanded and because more females have wanted to work.

Suggested Citation

  • Hiroshi Kawata & Saori Naganuma, 2010. "Labor Force Participation Rate in Japan," Bank of Japan Review Series 10-E-7, Bank of Japan.
    • Handle: RePEc:boj:bojrev:10-e-7
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    File URL: http://www.boj.or.jp/en/research/wps_rev/rev_2010/data/rev10e07.pdf
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    Cited by:

    1. Kitov, Ivan & KItov, Oleg, 2013. "Inflation, unemployment, and labor force. Phillips curves and long-term projections for Japan," MPRA Paper 49388, University Library of Munich, Germany.
    2. Sanae Tashiro & Chu-Ping Lo, 2020. "When Social Norms Influence the Employment of Women: The Case of Japan," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(3), pages 460-482, June.
    3. Fletcher, Erin K. & Pande, Rohini & Moore, Charity Troyer, 2019. "Women and Work in India: Descriptive Evidence and a Review of Potential Policies," India Policy Forum, National Council of Applied Economic Research, vol. 15(1), pages 149-216.
    4. Joshua K. Hausman & Johannes F. Wieland, 2015. "Overcoming the Lost Decades? Abenomics after Three Years," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(2 (Fall)), pages 385-431.
    5. Sanae Tashiro, 2015. "Is being single better? An analysis of employment structure and wages of Japanese female workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 239-254.
    6. Stephanie Aaronson & Tomaz Cajner & Bruce Fallick & Felix Galbis-Reig & Christopher Smith & William Wascher, 2014. "Labor Force Participation: Recent Developments and Future Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 45(2 (Fall)), pages 197-275.
    7. Franklin Soriano & Ruel Abello, 2015. "Modelling the relationships between the use of STEM* skills, collaboration, R&D and Innovation among Australian Businesses," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 345-374.

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