Has Abe's Womanomics Worked?

34 Pages Posted: 5 Jan 2018

Date Written: January 2018

Abstract

The present paper estimates the effect of the Abe Cabinet's Womanomics policies that aimed to increase female labor supply and keep women on a career path. The policies are surveyed, and the effects are estimated using microdata from the Labor Force Survey combined with data at the prefectural level on day care provision. A difference‐in‐difference (DD) method is applied to uncover the impacts of the Abe Cabinet's policies. The rapid increase in the provision of infant care, especially in the urban area, has contributed to a strong increase in the labor participation of mothers with young children. In addition, DD method estimates show a strong increase in mothers with infants staying in permanent‐contract regular employment. A significant shortening of work hours of workers, especially of parents with infants, is observed, which enabled working mothers to maintain their employment status. A change in the gender wage gap in the Japanese labor market is observed, but much progress is still required to close the large wage gap.

Keywords: day care, female labor supply, gender wage gap, nonstandard work arrangement, parental leave

JEL Classification: J13, J21, J31

Suggested Citation

Nagase, Nobuko, Has Abe's Womanomics Worked? (January 2018). Asian Economic Policy Review, Vol. 13, Issue 1, pp. 68-101, 2018, Available at SSRN: https://ssrn.com/abstract=3096767 or http://dx.doi.org/10.1111/aepr.12202

Nobuko Nagase (Contact Author)

Ochanomizu University ( email )

2-1-1 Ohtsuka
Tokyo, Bunkyo-ku 112-8610
Japan

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