(2012) also report a positive contribution of education measured as the average number of years of female education to the increase in FLFP. In Japan and Korea, there have been significant increases in female educational attainment levels in the past. However, FLFP remains low despite this higher level education of women. Many argue that this is evidence of the underutilization of highly-educated female labor in the workforce in these countries.
C. Empirical Results
Female labor force participation rate
FLFPdynamics are assessed by impulse responses to
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.