leave. And when mothers return to the labour market as children grow up, they often end up in low-paid non-regular jobs. Anyway, they often cannot return to regular employment positions because many jobs require candidates to be
Of all men in the OECD, Japanese men spend the least time in unpaid housework under a given age. Moreover, the Japanese tax/benefit model provides strong financial incentives for spouses to limit their earnings. In 2011 spouses with earnings below one million yen (about 30% of average earnings) were exempt from income tax. If their earnings were below ¥1.3 million they are covered by pension, health and long-term care insurance without having to make contributions. Gender barriers prevent Japan from reaping the benefits of its investment in education. After all, young women in Japan today are more likely to have a university degree than young men: 59% of women and 52% of men aged 25-34 years, compared with 23% and 32%, respectively, for women and men aged 45-54. Further progress can be made in terms of choice of study as, for example, around 60% of graduates with health and education degrees were women, compared with only around 10% in computing and engineering degrees. These gender gaps do not appear to be related to ability as compared to the large gender gaps in educational choices; gender gaps in reading, maths and science literacy for boys and girls around age 15 are relatively small. Japanese policy should raise awareness among young men and women about the consequences of educational choices for employment and career prospects. Japan seems to be in a “catch 22”. As long as female workers have limited incentives to pursue a career, they are indeed more likely to withdraw from the labour force, only to return, if household income so requires, in jobs for which they are frequently over-qualified. And as long as
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Women can ease labour shortages
Projected size of the labour force, thousands of people, Japan (a) Scenarios No change (b)
Convergence as female participation rate rises (c)
65 000
60 000
55 000
50 000
45 000
1 7 7 5 5 2 2 4 4 3 3 6 6 9 9 8 8 0 0 11 20 201 201 201 201 201 201 201 201 202 202 202 202 202 202 202 202 202 202 203 (a) The labour force projections are based on population projections for persons aged 15-64 years as reported by the OECD Demography and Population Database. (b) No-change scenario: the projected size of the total labour force aged 15-64 years if the labour force participation rates for men and women remain constant from 2011 to 2030 at the rates observed in 2010. (c) Convergence in participation rates: the projected size of the total labour force aged 15-64 years if the labour force participation rate for men remains constant from 2011 to 2030 at the rate observed in 2010, and the rate for women shows a gradual increase (steady growth rate) from 2011 to 2030 reaching the 2010 rate for men by 2030. Source: OECD (2012), Closing the Gender Gap: Act Now
women are expected to withdraw from the labour force around childbirth, Japanese employers are likely to perceive women as less committed to their careers and opt for men.
Companies should be encouraged to take on young female graduates, returning mothers and part-time workers in regular career streams and to demonstrate this clearly.
To break this vicious circle, Japanese labour market institutions need to change. Remuneration systems and career progression should be based on performance rather than seniority, while the talent pool of workers can be expanded by facilitating “returning mothers” and part-time workers to get back into regular employment. Importantly, the “long hours” culture should be curtailed so that workplaces become attractive to both parents and facilitate a more equal gender balance in paid and unpaid work. Leadership in workplaces will be key. Senior managers should lead by example, through taking their own holidays, and, for example, demanding middle management ensures that male and female employees use their full parental leave entitlements.
Changing workplace practices in this manner will require sustained effort over a long period. But it is worth doing. Workplace cultures that are less overbearing and conducive to the reconciliation of work and family life of both parents will help address the looming labour shortages; and if the evidence of OECD countries like France and Sweden is anything to go by, could also help increase fertility rates. This could help address the ageing issue in the years ahead. Another version of this article appeared in Nikkei Daily, 26 April 2013 OECD (2012), Closing the Gender Gap: Act Now, OECD Publishing Visit www.oecd.org/gender