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Yuko Kinoshita and Fang Guo

to afford more children. This reflects changes in social norms towards working mothers and also the public policies, which reduce the trade-off between childbearing and female employment. These policies include more generous parental leave, greater availability of childcare, and greater opportunities with availability of flexible hours ( Del Boca et al. 2003 ). Figure 5. Selected OECD: Female Labor Force Participation and Fertility Rate, 1970-1984 and 1985-2012 Source: OECD Labor Force Survey. Wage gender gap Gender discrimination is cited as one

Yuko Kinoshita and Fang Guo
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.
International Monetary Fund. European Dept.

-David (2016) report that the gap in has been diminishing, but in the “wrong” direction, as the result of lower enrollment of boys in advanced math and science courses. 9 According to OECD (2018) , adjusting Israel’s skills dispersion to the PIAAC average would reduce wage inequality by almost four percent. 10 These illustrative calculations, based on 2015 data, assume that the relative change in output is equivalent to the relative change in total wage payments. 11 MoF (2016) estimates that closing only the monthly wage gender gap between non

International Monetary Fund. European Dept.
This Selected Issues paper analyzes the macro-fiscal implications of an increase in infrastructure spending, considering Israel’s dual economy character. The efficiency of investment is key to ensuring growth benefits are achieved and to containing increases in the public debt ratio. Selecting projects with low rates of return, managing public investment inefficiently, or raising investment faster than absorptive capacity, can lead to weaker growth benefits and higher debt ratios that reduce the room to sustain increased public investment. Growth benefits will likely be insufficient to prevent a significant increase in debt ratios, indicating a need for revenue measures, where reductions in tax benefits are preferable. Allowing the public debt ratio to rise as much as 10 percentage points appears too high as Israel faces wider uncertainties than most advanced economies and it should also preserve fiscal space to facilitate structural reforms for long-term growth. Given Israel’s very low civilian spending, the government should consider financing most of the additional investment with additional revenues. Israel’s sizable foregone revenue from various tax benefits—around 5 percent of GDP per year—suggests significant scope for revenue gains. Our analysis also suggests that reducing tax benefits is least detrimental to growth, which in turn would be most positive for debt dynamics.
International Monetary Fund. African Dept.

reversing) and female labor force participation increased from 34 percent of the total labor force in 2000 to 41 percent in 2016. However, large gaps persist in secondary education and are more pronounced in tertiary education. In 2012, for every 10 boys completing their secondary education, only 6 girls got their diploma. Furthermore, sizable wage gender gaps persist, as women face larger barriers to enter and advance in the labor market and entrepreneurial activities. Estimations using the 2011 Household Survey point to a wage gap of 47 percent in Senegal, even after

International Monetary Fund. African Dept.
Senegal’s main challenge is sustaining high GDP growth rates while maintaining fiscal sustainability and improving the business environment to create jobs for the fast-growing population. The second phase of the Plan Sénégal Emergent (PSE) covering 2019-23 sets out a comprehensive reform agenda to achieve these objectives. Fiscal reforms should aim to increase revenues, strengthen public financial management (PFM), and improve the composition and quality of spending. Structural reforms to facilitate private investment and competitiveness would provide durable sources of growth, while development of a fiscal framework for oil and gas aligned with international best practice would ensure that these natural resources provide high economic and social returns. Further progress on improving the business environment will require simplifying tax administration and reforms to facilitate SME access to finance, and further develop the Special Economic Zones (SEZs). Policies to address gender and inequality issues would contribute to poverty reduction and well-distributed growth.