A Multinominal Logistic Approach to the Labor Force Behavior of Japanesemarried Women

Abstract

Using a multanornial logistic approach, we analyze the inter-dependencies among the labor force participation decisions of married women an Japan. These decisions are working part-time,working full-time, being unemployed (in the labor market but unable to find work), and not participating. Our focus is on the interdependency between the decision to work part-time and the decision to work full-time. Our results indicate that married women working full-time view part-time work as a good substitute, but the reverse is not observed. We also obtain estimates of the own-wage elasticity for both forms of participation and find that part-time labor force particicipation of Japanese married women is substantially more elastic than that of their full-time counterparts. These findings reinforce the view that married women in Japan with loose ties to the labor market are quite responsive to changes in the returns to work.