A New Growth Engine for Japan

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