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Care in an Aging East Asian Economy: Policy options and impacts on households and labor markets

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  • Lofgren, Hans
  • Fontana, Marzia
  • Kim, Kijong

Abstract

Gender is at the center of wide range of policy debates in many parts of the world, pointing to the need for analytical tools with a gender dimension. Drawing on the emerging literature of gendered computable general equilibrium (CGE) analysis, this paper takes a first step toward an analysis some of the gender-related challenges faced by aging high-income economies in East Asia (like Japan, South Korea, and Taiwan) in relation to care (of young and elderly) and time use. Its more specific purpose is to develop and test a prototype CGE model, accompanied by a stylized East Asian high-income country database. The model is designed for analysis of care policy with a focus on the expansion of care services for young and elderly, which may be provided by government and private services, and the distributional consequences this may have in terms of household wellbeing, inequality, and the incomes, employment, and time use for males and females. Compared to standard economic analysis, the model and the database is extended beyond GDP to cover leisure and household production of care and other services. In outline, the paper consists of a literature review (Section 2), a presentation of the model and its database with a focus on the extensions to a standard CGE model that are introduced to address the care economy and time use (Section 3), presentation and analysis of simulations (Section 4), and conclusions (Section 5). The paper appendices present additional simulation results

Suggested Citation

  • Lofgren, Hans & Fontana, Marzia & Kim, Kijong, 2018. "Care in an Aging East Asian Economy: Policy options and impacts on households and labor markets," Conference papers 333004, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333004
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    References listed on IDEAS

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    1. Ismaël Fofana & John Cockburn & Bernard Decaluwé, 2005. "Developing Country Superwomen: Impacts of Trade Liberalisation on Female Market and Domestic Work," Cahiers de recherche 0519, CIRPEE.
    2. Channing Arndt & Sherman Robinson & Finn Tarp, 2006. "Trade Reform and Gender in Mozambique," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 32, pages 73-89.
    3. Arndt, Channing & Benfica, Rui & Thurlow, James, 2011. "Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique," World Development, Elsevier, vol. 39(9), pages 1649-1662, September.
    4. Fontana, Marzia & Wood, Adrian, 2000. "Modeling the Effects of Trade on Women, at Work and at Home," World Development, Elsevier, vol. 28(7), pages 1173-1190, July.
    5. Rizwana Siddiqui, 2009. "Modeling Gender Effects of Pakistan's Trade Liberalization," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 287-321.
    6. Lofgren, Hans & Cicowiez, Martin & Diaz-Bonilla, Carolina, 2013. "MAMS – A Computable General Equilibrium Model for Developing Country Strategy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 159-276, Elsevier.
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