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研究成果
研究成果
Working Paper Series 2021-2 Encouraging Labor Participation of Married Female in Japan: The Roles of Tax System and Child-care Subsidy
研究成果名稱：
Working Paper Series 2021-2 Encouraging Labor Participation of Married Female in Japan: The Roles of Tax System and Child-care Subsidy摘 要：
Similar to other countries, child care plays an important role in determining labor participation of
married women in Japan. In addition, Japan’s current lower female labor force participation could also
be attributed to its spousal and tax deduction policies that provide disincentives for married women to
work. To examine these issues, this paper employs a dynamic general equilibrium model with heterogenous
households, which are differentiated by the main taxpayer’s income, spouse’s education level and
preference on leisure. We find that the 2004 tax reform in Japan had minor effects on encouraging married
women’s labor participation. Based on the baseline economy with the 2004 tax reform, we further
conduct policy experiments. We conclude that the effect of changing tax structure on encouraging married
women’s labor supply is larger than providing more child-care subsidies. Besides, heterogenous
households response to policy reforms in different ways. Therefore, it is important to understand who
are the policy target in order to formulate appropriate policies.