The gender wage gap and sample selection in Japan

Onozuka, Yuki

doi:10.1016/j.jjie.2016.01.002

Cited by 6 publications

(3 citation statements)

References 16 publications

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“…This research can be extended in several directions. First, several authors (e.g., Neuman and Oaxaca, 2005;Chzhen and Mumford, 2011;Picchio and Mussida, 2011;Onozuka, 2016;Machado, 2017) have found that gender-specific changes in selection into full-time employment are potentially important to changes in wage distributions. Hence, we can add a labor supply module to our decomposition procedure, and thereby account for changes in hours of work as well as well as participation.…”

Section: Resultsmentioning

confidence: 99%

What drives the convergence in male and female wage distributions in Israel? A Shapley decomposition approach

Kimhi

Hanuka-Taflia

2019

J Econ Inequal

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We examine the drivers of the convergence of the hourly wage distributions of males and females in Israel between 1995 and 2008. Israel is an interesting case study in this respect, since it experienced declining wage inequality in recent decades, as opposed to most developed countries. We found convergence of both average wages and wage inequality. In particular, average wages increased faster for females than for males, while wage inequality declined faster for males than for females. We decomposed these distributional changes into the contributions of worker and job attributes, the returns on these attributes and residuals using a Shapley approach applied to counterfactual simulated wage distributions. We found that most of the increase in male wages was due to the increased wage gaps in favor of specific occupations and industries, while female wages increased mostly due to the increase in the returns to experience. The decline in wage inequality was driven mostly by changes in attributes, the decline in the returns to education, and the catching-up of immigrant workers, and each of these components was stronger for males than for females. We conclude that the convergence of the male and female wage distributions was due to both changes in the supply of labor, especially among females, and changes in the demand for labor leading to changes in the returns to various skills.

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Section: Resultsmentioning

confidence: 99%

What drives the convergence in male and female wage distributions in Israel? A Shapley decomposition approach

Kimhi

Hanuka-Taflia

2019

J Econ Inequal

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“…We note a caveat regarding the mean wage change among females because the rapid rise in female employment entails a change in worker composition in terms of unobserved characteristics within a gender and age group. Onozuka (2016) indeed points out that the change in the composition of unobserved characteristics of the female workforce played a significant role in explaining the change in the mean wage during the 1990s. For males, in contrast, real wage deflation continued even after Abenomics, with the annual rate of wage deflation accelerating from 3.4% (=[1 – 0.042] 1/12 – 1) to 4.0% (=[1 – 0.020] 1/5 – 1).…”

Section: Changes In Job Stability and Wagesmentioning

confidence: 99%

An Assessment of Abenomics from the Labor Market Perspective

Kawaguchi

Kawata

Toriyabe

2021

Asian Economic Policy Review

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The present paper documents the change in employment and wages between 2012 and 2020 when Prime Minister Shinzo Abe implemented his economic policy popularly known as Abenomics. Despite population aging that by itself would have decreased the employment rate by 2.8 percentage points, the aggregate employment rate increased from 56.5% in 2012 to 60.7% in 2019, largely because of a substantial increase in the 25-64-year-old female employment rate, which was especially profound in the health and welfare industry. The real wage declined by 1.8% from 2012 to 2017, of which 1.4% is explained by changes in worker composition, particularly the increase in female workers. We also assess the impact of COVID-19 on the labor market in 2020 and discuss its impact on the long term labor market trend.

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“…The replacement of low-paid regular full-time workers by irregular workers and the introduction of the Equal Employment Opportunity Law may have changed the selection of women in regular employment. Onozuka (2016) examines how much the observed convergence in the gender wage gap from 1992 to 2002 is influenced by changes in the women labor participation behavior. The results show it explains 63.27 percent of the observed convergence in the mean log wage gap between female and male workers who work in regular employment.…”

Section: Previous Literaturementioning

confidence: 99%

The timing of childbirth and the child wage-penalty in Japan

Dumauli

2019

IJSE

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Purpose The purpose of this paper is to examine the effect of timing of first childbirth on the child wage-penalty experienced by working mothers in Japan. There is an increasing age of first childbirth and increasing labor force participation rate of Japanese women: does it indicate that the presence of children causes women to pay a high price for motherhood? Design/methodology/approach This study estimates regression equations explaining the labor wages of working women, using a longitudinal data set from the Japan Household Panel Survey (the JHPS/KHPS 2004–2015). The fixed-effect method is utilized to control the bias that results from unobserved individual-specific characteristics. Findings The results indicate that having children negatively affects the wages of Japanese women. However, there is no variation in the child wage-penalty between early child bearers (age 27 years or younger) and late child bearers (older than 27 years). In addition, an additional year of post-birth work experience contributes equally to an additional year of pre-birth work experience on wage gains. These findings remain robust with an alternate cut-off age of 30-years old. Originality/value There is no previous study that relates the timing of the first birth to the motherhood wage-penalty in Japan. This study indicates that the timing of childbirth does not seem to be an important factor in the improvement of women’s labor wages. Thus, delaying childbirth may not be an optimal birth timing to maximize the lifetime earnings of Japanese women, especially for those who are career-minded.

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The gender wage gap and sample selection in Japan

Cited by 6 publications

References 16 publications

What drives the convergence in male and female wage distributions in Israel? A Shapley decomposition approach

What drives the convergence in male and female wage distributions in Israel? A Shapley decomposition approach

An Assessment of Abenomics from the Labor Market Perspective

The timing of childbirth and the child wage-penalty in Japan

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