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Work-Life Balance and Gender Differences in Self-Employment Income during the Start-up Stage in Japan

  • Hiroyuki Okamuro
  • Kenta Ikeuchi

This study investigates the determinants of the income levels of newly self-employed workers compared to those of employees, while focusing on the effects of gender and childcare. We argue that working mothers with preschool children prefer self-employment to paid employment, as such arrangements offer better work–life balance. Hence, we predict that self-employed working mothers earn lower incomes than their male counterparts, employed counterparts, and female self-employed worker counterparts who do not have preschool children. Empirical results based on anonymous micro data from Japanese employment statistics support our hypotheses.

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File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd12-260.pdf
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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Global COE Hi-Stat Discussion Paper Series with number gd12-260.

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Date of creation: Nov 2012
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Handle: RePEc:hst:ghsdps:gd12-260
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  1. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, June.
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  3. Abe, Yukiko, 2010. "Equal Employment Opportunity Law and the gender wage gap in Japan: A cohort analysis," Journal of Asian Economics, Elsevier, vol. 21(2), pages 142-155, April.
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  7. Greg Hundley, 2000. "Male/female earnings differences in self-employment: The effects of marriage, children, and the household division of labor," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 95-114, October.
  8. Genda, Yuji & Kambayashi, Ryo, 2002. "Declining Self-Employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(1), pages 73-91, March.
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  10. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 1-19.
  11. Hiromi Taniguchi, 2002. "Determinants of Women's Entry into Self-Employment," Social Science Quarterly, Southwestern Social Science Association, vol. 83(3), pages 875-893.
  12. Robert Fairlie & Alicia Robb, 2008. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Working Papers 08-39, Center for Economic Studies, U.S. Census Bureau.
  13. Greg Hundley, 2001. "Why Women Earn Less Than Men in Self-Employment," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 817-829, October.
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  16. Masaru Sasaki, 2002. "The Causal Effect of Family Structure on Labor Force Participation among Japanese Married Women," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 429-440.
  17. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355.
  18. Joni Hersch & Leslie S. Stratton, 1997. "Housework, Fixed Effects, and Wages of Married Workers," Journal of Human Resources, University of Wisconsin Press, vol. 32(2), pages 285-307.
  19. Yannis Georgellis & Howard J. Wall, 2004. "Gender differences in self-employment," Working Papers 1999-008, Federal Reserve Bank of St. Louis.
  20. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
  21. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2005. "Entrepreneurship Selection and Performance: A Meta-Analysis of the Impact of Education in Developing Economies," World Bank Economic Review, World Bank Group, vol. 19(2), pages 225-261.
  22. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August.
  23. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2008. "Education And Entrepreneurship Selection And Performance: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 795-841, December.
  24. Macpherson, David A., 1988. "Self-employment and married women," Economics Letters, Elsevier, vol. 28(3), pages 281-284.
  25. Nakamura, Jiro & Ueda, Atsuko, 1999. "On the Determinants of Career Interruption by Childbirth among Married Women in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 13(1), pages 73-89, March.
  26. Leslie S. Stratton, 2001. "Why Does More Housework Lower Women's Wages? Testing Hypotheses Involving Job Effort and Hours Flexibility," Social Science Quarterly, Southwestern Social Science Association, vol. 82(1), pages 67-76.
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