TEDxTokyo - Kathy Matsui - Womenomics - [English]

Summary

In her 1999 report 'Womenomics,' Tonia David discusses Japan's demographic crisis and its economic challenges, emphasizing the underutilization of women in the workforce. Japan's aging population and declining birthrate are major obstacles, but David argues that increasing female workforce participation could be a key solution. She explores the 'M-curve' phenomenon, where women leave the workforce during their most productive years, and highlights the need for daycare, flexible work policies, and more gender diversity in leadership. By empowering women, David suggests Japan could see a 15% increase in GDP.

Takeaways

• 😀 In 1999, the term 'Womenomics' was coined to highlight the untapped potential of women in Japan's workforce as a solution to the country's structural challenges.
• 😀 Japan faces a severe demographic issue, with its population projected to shrink by one-third by 2055, and the elderly population expected to double, creating a workforce crisis.
• 😀 Japan has the lowest female workforce participation rate among developed nations, ranking below countries like Sweden and Denmark, with a participation rate of only 60%.
• 😀 The 'M-curve' in Japan illustrates a significant dip in female employment during the peak child-rearing years (late 20s to 40s), with 70% of Japanese mothers quitting their jobs after having a child.
• 😀 One major issue preventing higher female workforce participation is the lack of sufficient daycare facilities in Japan, where only 28% of children under three are in daycare compared to 60% in countries like Denmark.
• 😀 Inadequate support from male partners also contributes to the problem, with Japanese fathers spending just 15 minutes a day on childcare, compared to over 3 hours in countries like Sweden and Norway.
• 😀 Despite Japan's equal employment opportunity law passed 25 years ago, gender wage disparity remains, with women earning only two-thirds of what their male counterparts earn.
• 😀 Companies that implement diversity practices, such as supporting working mothers and ensuring objective evaluations, tend to have higher profit margins compared to companies that do not.
• 😀 A common argument against increasing female participation in the workforce is that it would lower the birth rate, but evidence from other countries shows that higher female workforce participation actually correlates with higher birth rates.
• 😀 Implementing 'Womenomics' in Japan could boost the country's GDP by 15%, making it a crucial economic strategy to address Japan's challenges.
• 😀 Key steps for implementing Womenomics include shifting mindsets to integrate diversity into business strategies, offering flexible work arrangements, and increasing the number of female role models in leadership positions.

Q & A

What is the core thesis of the presentation?

The core thesis is that addressing Japan's structural challenges, particularly its declining workforce, can be effectively tackled by better utilizing its female population, or 'Womenomics'. This involves increasing female labor participation to boost economic growth and counter demographic issues.

What is the 'D-word' mentioned in the presentation?

The 'D-word' refers to 'demographics', which highlights Japan's aging population and shrinking workforce, posing a significant challenge for the country's economy and society.

What are the three proposed solutions to Japan's demographic crisis?

The three solutions are: 1) Raising the birth rate, 2) Changing immigration laws, and 3) More effectively utilizing the female population in the workforce.

What is the 'M-curve' and why is it significant?

The 'M-curve' refers to a pattern in the workforce participation of women in Japan, where their employment rate dips significantly between the ages of late 20s and late 40s due to child-rearing responsibilities. This gap represents a loss of productivity during one of the most productive periods of their careers.

What is the issue with daycare facilities in Japan?

The shortage of daycare facilities is a significant barrier to women returning to the workforce after childbirth. Currently, only 28% of children under 3 are in daycare, far below levels in countries like France and Denmark.

How do gender roles within households affect female workforce participation in Japan?

The lack of cooperation in household duties, particularly in childcare, limits women's ability to work full-time. Japanese fathers spend significantly fewer hours on childcare compared to their counterparts in other countries, with some fathers spending as little as 15 minutes a day on child care.

How does Japan's gender wage gap compare globally?

Japan's gender wage gap is still significant, with women earning only two-thirds of what men earn, despite laws like the Equal Employment Opportunity Law. This gap discourages many women from continuing their careers, further exacerbating the country's labor shortage.

How does gender diversity in companies impact performance?

Companies that have implemented diversity-focused practices, such as supporting working mothers and ensuring objective evaluations, tend to have higher profit margins than companies that do not. This demonstrates the economic benefits of promoting gender diversity.

What is the relationship between female labor participation and birth rates?

Contrary to the common belief that increasing female workforce participation will lower the birth rate, the data shows that countries with higher female workforce participation, like Sweden and the U.S., also have higher birth rates.

What is the potential impact on Japan's GDP if female workforce participation increases?

If Japan were to increase its female labor force participation rate from 60% to 80%, similar to that of men, it could result in a 15% increase in GDP, highlighting the significant economic potential of utilizing more women in the workforce.