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What Can Boost Female Labor Force Participation in Asia?

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  • Yuko Kinoshita
  • Fang Guo

Abstract

Both Japan and Korea are trying to boost female labor force participation (FLFP) as they face the challenges of a rapidly aging population. Though FLFP has generally been on a rising trend, the female labor force in both countries is skewed towards non-regular employment despite women’s high education levels. This paper empirically examines what helps Japan and Korea to increase FLFP by type (i.e., regular vs. non-regular employment), using the SVAR model. In so doing, we compare these two Asian countries with two Nordic countries Norway and Finland. The main findings are: (i) child cash allowances tend to reduce the proportion of regular female employment in Japan and Korea, (ii) the persistent gender wage gap encourages more non-regular employment, (iii) a greater proportion of regular female employment is associated with higher fertility, and (iv) there is a need for more public spending on childcare for age 6-11 in Japan and Korea to help women continue to work.

Suggested Citation

  • Yuko Kinoshita & Fang Guo, 2015. "What Can Boost Female Labor Force Participation in Asia?," IMF Working Papers 2015/056, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/056
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    2. Gunji, Hiroshi & Miyazaki, Kenji, 2017. "Why do Japanese women work so much less than Japanese men? A business cycle accounting approach," Japan and the World Economy, Elsevier, vol. 42(C), pages 45-55.
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    6. Asano, Akihito & Tyers, Rod, 2015. "Third Arrow Reforms and Japan’s Economic Performance," Conference papers 332617, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Lone Engbo Christiansen & Ms. Huidan Huidan Lin & Ms. Joana Pereira & Petia Topalova & Ms. Rima A Turk, 2016. "Individual Choice or Policies? Drivers of Female Employment in Europe," IMF Working Papers 2016/049, International Monetary Fund.
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