A dynamic decision model of marriage, childbearing, and labour force participation of women in Japan

This paper empirically examines marriage, child bearing and labour force participation behaviour of fertile-aged women in Japan, applying an estimable dynamic model of dis-crete choice. Using microdata from the 1994-1999 Japanese Panel Survey of Consumers, the structural estimation result suggests that, overall, women are worse off with marriage and part-time work without financial benefits. Women are better off having two or more children, but considerably worse off because of the burden of raising infants. In addition, probabilities of finding full-time work after career interruption are estimated at about 18% for university educated women and 12-13% for less educated women.