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Endogenous Female Labour Force Participation and Their Attachment to the Labour Market

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  • Makoto Masui

Abstract

This study explores the behavior of female workers in Japan regarding labour market participation using a search and matching model with endogenous participation, heterogeneous productivity and variable participation costs. The model containing variable participation costs enables us to capture how women's market attachment responds to employment‐enhancing policies. Key findings include: (i) employed women in Japan tend to leave the labour market and become non‐participants from the social efficiency perspective; (ii) policies supporting female participation improve social welfare but do not necessarily enhance workforce attachment; (iii) improved matching efficiency boosts employment and welfare but decreases female labour attachment.

Suggested Citation

  • Makoto Masui, 2025. "Endogenous Female Labour Force Participation and Their Attachment to the Labour Market," LABOUR, CEIS, vol. 39(4), pages 249-270, December.
    • Handle: RePEc:bla:labour:v:39:y:2025:i:4:p:249-270
    DOI: 10.1111/labr.70002
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