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Why Women Work the Way They Do in Japan: Roles of Fiscal Policies

Author

Listed:
  • Sagiri Kitao
  • Dinamo Mikoshiba

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.

Suggested Citation

  • Sagiri Kitao & Dinamo Mikoshiba, 2022. "Why Women Work the Way They Do in Japan: Roles of Fiscal Policies," CAMA Working Papers 2022-21, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2022-21
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    File URL: https://crawford.anu.edu.au/sites/default/files/2025-05/21_2022_Kitao_Mikoshiba_0.pdf
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    Cited by:

    1. Gao, Han, 2025. "Social security and female labor supply in China," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    2. Kazuyasu Sakamoto & Yoko Morita, 2024. "Gender identity and market and non-market work of married women: evidence from Japan," Review of Economics of the Household, Springer, vol. 22(2), pages 511-533, June.
    3. Toama Boke Aime ARNAULD & Junichi FUJIMOTO & Minchung HSU, 2026. "Marriage, Fertility, and Female Labor Force Participation in an Aging Economy," Discussion papers 26014, Research Institute of Economy, Trade and Industry (RIETI).
    4. Kazuharu Yanagimoto, 2024. "Why not Choose a Better Job? Flexibility, Social Norms, and Gender Gaps in Japan," Working Papers wp2024_2405, CEMFI.

    More about this item

    Keywords

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    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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