Womenomics reforms- Lessons for India

General Studies Paper-3

Context: Despite Japan facing challenges such as low birth rates, a shrinking population, and slow economic growth, reforms promoting “womenomics” were implemented during the “Abenomics” (Tenure of PM Shinzō Abe)period. Now, these reforms are yielding positive outcomes

The women’s labour force participation rate (WLFPR) in Japan has increased by ten percentage points, rising from 64.9% in 2013 to 75.2% in 2023. This marks the fastest growth in Japan’s WLFPR in recent decades and stands as the highest among G7 countries over the past decade. It’s estimated that this rise in women’s labour force participation rate could  boost Japan’s GDP per capita by 4% to 8%.

What reforms were undertaken by Japan to enhance participation of women in labour force?

1. Investment in care economy-The government’s investment in expanding daycare capacity from 2.2 million in 2012 to 2.8 million in 2018 has decreased daycare waiting lists. Further, in 2023, Japan’s government announced an additional investment of $26 billion for childcare measures from 2023 to 2026.
2. Rebalancing of gender norms– From 2022,the government has introduced greater flexibility in paternity leave provisions such as reduced notice periods, and allowing men to break up their paternity leave. This has resulted in boosting paternity leave uptake from 2 per cent in 2012, to 17 per cent in 2023.

What are the lessons that India can learn from Japan to boost its Female Labour Force Participation Rate?

1. India can also invest in long-term public support for care infrastructure and services, particularly childcare.
2. India can enhance paternal leave uptake among men by adopting an employer-led approach that dispels gender stereotypes around care work. However, this would also require change in people’s mindsets.
3. India can invest in various care services like childcare, elder care, domestic assistance, and long-term care for those with high needs. This helps decrease dependency and taps into the growing market for elder care services. For ex-Japan has collaborated with the private sector to invest in affordable senior living and care. With India’s elderly population expected to double by 2050, it can also make similar investments in elder care infrastructure.

What are the policy changes that can be made by India to improve its Female Labour Force Participation Rate?

There is a need to adopt a five-pillar strategy to unlock business opportunities in India’s care economy, such as-

1. There should be formulation of gender-neutral and employee friendly paternity leave policies.
2. Government should provide subsidies for availing/providing care services.
3. Public and private sector should enhance investment in care infrastructure and services.
4. There should be skill development programmes for care workers.

Government should pay attention to quality assurance for care services and infrastructure.