Determinants of the Labor Force Participation of Married Female Employees in Japan : Cross-section Analysis

Abstract

This paper examines the characteristics of employment patterns observed among the female employeesand analyzes the determinants of labor force participation of married female employees. Even though the Japanese female employee rate is increasing over time, many women leave theirwork place for child birth and child-rearing, and rejoin the work force as part-time workers after theburden of child-rearing has reduced. This explains one of the main reasons why the female labor forceparticipation rate of Japan reveals an M-shaped curve. In cross-section analysis regarding the determinants of the female labor force participation, we usedthe data of the married female employee rate as the dependent variable. The ‘Female Wage Rate’ and‘Industrial Structure’ variables showed a positive effect, while the ‘Income of Household’, ‘ChildrenNumber’ and ‘Unemployment Rate’ variables showed a negative effect on the labor force participation ofmarried female employees. Particularly, the ‘Income of Household’ variable is one of the importantinfluences on a married woman’s decision whether or not to participate in the labor market. Married female employees in Japan have a tendency to work as secondary workers in their family. Asthe husband’s income is higher, the employee rate of wives is lower. In addition, balancing child-careand work is still problematic to married female employees. Seventy percent of female employees leavethe work place after their first child is born, while only 30 percent of them continue to work.