Spatial analysis of female labor force participation rates in Japan

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Population and Economic Development in East Asia 2

Spatial analysis of female labor force participation rates in Japan Akiko Sakanishi1  Received: 24 April 2020 / Accepted: 29 June 2020 © Japan Economic Policy Association (JEPA) 2020

Abstract This paper investigates spatial distribution patterns of the female labor force participation rate (FLP) among the working-age population (aged 15–64 years) in Japan. Although many previous studies have considered the factors affecting the FLP, regional inequality and spatial interdependence of the FLP remain underexplored. This study utilizes exploratory spatial data analysis to identify spatial heterogeneity. The findings show that there are significant spatial clusters of low FLP in large metropolitan areas with high population density. Regions with a low FLP in 2000 showed a higher FLP growth rate between 2000 and 2015 than regions with a high FLP in 2000. By 2015, this trend had resulted in significantly reduced regional disparities of the FLP. However, spatial cluster patterns have barely changed since 2000. These results suggest that regional policies for increasing the FLP in large metropolitan areas are crucial for correcting the regional inequality of FLP and raising the nationwide FLP. Keywords  Female labor force participation · Spatial analysis · Regional inequality · Spatial cluster JEL Classification  J21 · J82 · R12

Introduction The female labor force participation rate (FLP) for the population aged 15 and over has been stagnant in Japan for the recent decades mainly due to the aging of the population. The rate increased slightly from 48.7% in 2000 to 50.0% in 2015. Though FLP at the national level  remained flat, there have been significant regional disparities in FLP of the working-age population (15–64  years). Among * Akiko Sakanishi [email protected] 1



College of Policy Science, Ritsumeikan University, 2‑150, Iwakura‑cho, Ibaraki, Osaka 567‑8570, Japan

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International Journal of Economic Policy Studies

3362 administrative areas in Japan, the lowest and the highest values are 41.8% and 89.1%, respectively in 2015, showing a big difference. Furthermore, there is a remarkable tendency that regions with low FLP are geographically concentrated. It is quite important to investigate spatial distribution patterns of FLP in order to implement regional labor market  policies effectively. Therefore, this study aims to examine spatial distribution patterns of FLP. To improve FLP under the rapidly aging of the population, it is crucial to raise participation rates for the workingage population, specifically for the regions with low FLP and consequently reduce regional differences in FLP. Various studies have examined the determinants of female labor force participation rate (FLP). In Japan, the total fertility rate (TFR) and FLP have been positively correlated since the mid-1970s. In a time series analysis, Kato [1] examined whether the observed relationship between TFR and FLP in Japan truly exists. Kato [1] identified a genuine