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State Dependence in Labour Force Participation of Married Women in Japan

Author

Listed:
  • Okamura, Kazuaki

    (Department of Economics and social Sciences, Kochi University, Japan)

  • Islam, Nizamul

    (CEPS/INSTEAD, Luxembourg)

Abstract

This paper investigates state dependence in labour participation by married women in Japan. We statistically investigate whether ’true’ state dependence, in which preferences, abilities, or constraints on future decisions are altered by experiencing certain events, exists in the choice between regular and non-regular work (part-time, contract, or other non-regular work). The empirical results suggest significant true state dependence for the choice of regular and non-regular work. This significant effect of true state dependence on regular work justifies ’stepping stone’ policies from nonparticipation or non-regular work to regular work or ’maintenance’ policies to support participation in temporary non-regular work. On the other hand, the significant effect of true state dependence on non-regular work indicates that non-regular work constrains the ability or preference of married women to participate in regular work. In this sense, non-regular work is exclusionary. This result suggests that policies are needed to support the movement of non-regular workers into regular work.

Suggested Citation

  • Okamura, Kazuaki & Islam, Nizamul, 2009. "State Dependence in Labour Force Participation of Married Women in Japan," IRISS Working Paper Series 2009-17, IRISS at CEPS/INSTEAD.
  • Handle: RePEc:irs:iriswp:2009-17
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    File URL: http://iriss.ceps.lu/documents/irisswp115.pdf
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    Cited by:

    1. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.
    2. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.
    3. Zhiyang Jia & Trine E. Vattø, 2016. "The path of labor supply adjustment. Sources of lagged responses to tax-benefit reforms," Discussion Papers 854, Statistics Norway, Research Department.

    More about this item

    Keywords

    Multinomial ; Labour ; Participation ; State dependence ; Stepping stone;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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