Copyright Page
© 2023 International Monetary Fund
SIP/2023/030
IMF Selected Issues Paper
Asia and Pacific Department
A New Growth Engine for Japan: Women in STEM Fields
Prepared by Rui Xu
Authorized for distribution by Ranil Salgado
May 2023
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed in March 2023. This paper is also published separately as IMF Country Report No 23/128.
ABSTRACT: Despite recent improvements in female labor force participation, women remain underrepresented in STEM fields in Japan. Given the close link between STEM workers and innovation, encouraging women to pursue STEM careers could boost growth potential. Using a calibrated endogenous growth model with STEM talent, this paper quantifies the potential gains from eliminating barriers to STEM fields among women. The findings suggest that bridging the gender gap in STEM fields can boost TFP growth by 20 percent and consumption-equivalent welfare by 4 percent in Japan.
RECOMMENDED CITATION: Xu, Rui. 2023. “A New Growth Engine for Japan: Women in STEM Fields.” IMF Selected Issues Paper (SIP/2023/030). Washington, D.C.: International Monetary Fund.
| JEL Classification Numbers: | O31, O34, O41, J71, J78 |
| Keywords: | STEM workers, women, endogenous growth, heterogenous talent, innovation, TFP growth, consumption-equivalent welfare, Japan. |
| Author’s E-Mail Address: | RXu@imf.org |
| JEL Classification Numbers: | O31, O34, O41, J71, J78 |
| Keywords: | STEM workers, women, endogenous growth, heterogenous talent, innovation, TFP growth, consumption-equivalent welfare, Japan. |
| Author’s E-Mail Address: | RXu@imf.org |
Front Page
SELECTED ISSUES PAPERS
A New Growth Engine for Japan: Women in STEM Fields
Japan
Prepared by Rui Xu1
Title Page
JAPAN
SELECTED ISSUES
March 2023
Approved By
Asia and Pacific Department
Prepared By Rui Xu.
Contents
A NEW GROWTH ENGINE FOR JAPAN: WOMEN IN STEM FIELDS
A. Introduction
B. An Endogenous Growth Model with STEM Talent
C. Results
D. Policy Implications
BOXES
1. Model Setup
2. Consumption-equivalent Welfare
FIGURES
1. Women in Labor Market
2. Barriers to Female STEM Workers
TABLES
1. Parameter Calibration
2. Welfare Impact of Removing Barriers to Female STEM Workers
References
The author would like to thank the Japanese authorities for providing helpful comments.