Heterogeneity in Returns to Work Experience: A Dynamic Model of Female Labor Force Participation

This paper provides structural estimates of heterogeneous returns to work experience for Japanese married women. A dynamic model of labor force participation is used to account for dynamic selfselection into employment. Heterogeneity is incorporated into the model in a way that allows for the multidimensional skill heterogeneity in employment and home production and for the individual-specific slope and curvature of experience effect on earnings. The structural estimates and their comparison to the reduced-form estimates highlight the importance of dynamic self-selection into employment and heterogeneity in returns to work experience.

Intra-family Transfers in Japan: Intergenerational Co-residence, Distance, andContact

Classified broadly, two motives for intra-family transfers exist: altruism and selfishness. This paper examines two selfish hypotheses | the exchange motive (strategic bequest motive)and the demonstration effect | using a new Japanese micro data set. My analysis of the determinants of intergenerational co-residence, distance between residences, and frequency of contact yields considerable support for the exchange motive but no support for the demonstration effect. The findings are consistent with the exchange motive after distinguishing it from mutual altruism using a specific question.

Intertemporal Substitution in the Time Allocation of Married Women

This paper studies a life-cycle model of home production to examine how married women change their allocation of time in response to evolutionary movements along the life-cycle wage profile in Japan. After accounting for the potential bias due to heterogeneity, measurement error, weak instruments, and missing data, the estimates of intertemporal substitution elasticity obtained from the home production model are moderate and similar to those obtained from the standard labor supply model.labor supply, home production, intertemporal substitution

Family Background and Economic Outcomes in Japan

There has been increasing concern about the influence of elements of family background on children’s future outcomes in Japan. This paper empirically examines the long-term impact of family background, including sibling composition and parental attributes, and reveals how these elements of Japanese women’s family backgrounds affect their educational attainment and investment, labor market outcomes, family formation, and spousal characteristics.sibling composition, family background, intergenerational correlations, family formation, assortative mating

Labor Supply Responses to the 1990s Japanese Tax Reforms

The consumption-leisure choice model implies that an exogenous change in tax rates will bring about a change in labor supply. This implication is expected to be important to labor supplied by secondary earners under a progressive tax system when spousal income alters effective marginal tax rates. This paper examines labor supply responses to the income tax changes associated with Japanese tax reforms during the 1990s. Empirical specifications are presented in a way that is consistent with a life-cycle model of consumption and labor supply. A simple solution is applied to the sample-selection problem in panel data models with endogenous regressors. The results indicate that the hours-of-work elasticity with respect to the net-of-tax rate is 0.8 for married women.Labor Supply Elasticity, Intertemporal Labor Supply Model, Sample-Selection Correction Model, Quasi-Experiment, Tax Reforms

Labor Supply Responses to the 1990s Japanese Tax Reforms

The consumption-leisure choice model implies that an exogenous change in tax rates will induce a change in labor supply. This implication is expected to be important to labor supplied by secondary earners under a progressive tax system when spousal income alters effective marginal tax rates. This paper examines labor supply responses to the income tax changes associated with Japanese tax reforms during the 1990s. The results indicate that the hours-of-work elasticity with respect to the net-of-tax rate is 0.8 for married women.Labor Supply Elasticity, Intertemporal Labor Supply Model, Sample-Selection Correction Model, Quasi-Experiment, Tax Reforms

Heterogeneity in Returns to Work Experience : A Dynamic Model of Female Labor Force Participation

This paper provides structural estimates of heterogeneous returns to work experience for Japanese married women. A dynamic model of labor force participation is used to account for dynamic self-selection into employment. Heterogeneity is incorporated into the model in a way that allows for the multidimensional skill heterogeneity in employment and home production and for the individual-specific slope and curvature of experience effect on earnings. The structural estimates and their comparison to the reduced-form estimates highlight the importance of dynamic self-selection into employment and heterogeneity in returns to work experience.heterogeneous returns, Japan, labour, multidimensional skill heterogeneity in employment, structual estimates

ICT Capital-Skill Complementarity and Wage Inequality: Evidence from OECD Countries

Although wage inequality has evolved in advanced countries over recent decades, it is unknown the extent to which the evolution of wage inequality is attributable to observed factors such as capital and labor quantities or unobserved factors such as labor-augmenting technology. To examine this issue, we estimate an aggregate production function extended to allow for capital-skill complementarity and factor-biased technological change using cross-country panel data and the shift-share instrument. Our results indicate that most of the changes in the skill premium are attributed to observed factors including ICT equipment in the majority of OECD countries