Using Aggregate Data to Estimate the Part-Time and Full-Time Work Behavior of Japanese Women

This paper analyzes the interdependencies among the labor force participation decisions of married women in Japan. These decisions are working part-time, working full-time, being unemployed (in the labor market but unable to find work), and not participating. We focus on the interdependency between the decision to work part-time and the decision to work full-time. We obtain positive own-wage elasticities for full-time and part-time participation, with part-time labor force participation of Japanese married women being substantially more elastic than that of their full-time counterparts. We also find that the elasticity of full-time participation in response to the part-time wage is greater than the elasticity of part-time participation in response to the full-time wage.