| By: |
Sagiri Kitao;
Minamo Mikoshiba |
| Abstract: |
Women work less often and earn significantly less than men in Japan. We use
panel data to investigate employment and earnings dynamics of single and
married women over the life-cycle and build a structural model to study the
roles of fiscal policies in accounting for their behavior. We show that
eliminating spousal deductions, social insurance premium exemptions and
survivors’ pension benefits for low-income spouses would significantly raise
the labor supply of women and their earnings. More women would opt for regular
jobs rather than contingent jobs, accumulate more human capital, and enjoy
higher income growth. The government would earn higher net revenues and there
is a welfare gain when additional taxes are transferred back. |
| Keywords: |
Female labor force participation, life-cycle, human capital accumulation, spousal deductions and exemptions, survivors’ benefits, two-tiered employment system, Japan |
| JEL: |
D15 H2 H31 J22 J24 |
| Date: |
2022–03 |
| URL: |
http://d.repec.org/n?u=RePEc:een:camaaa:2022-21&r= |