Effect of Caregiving on Employment for Retiring Japanese Individuals

We examined employment and caregiving behavior at retiring age in Japan, considering the marital status, living-with-parent status, spouse employment, spouse income, and net financial assets. We found that the labor participation rate for caregiving married females living with parents was lowest when husbands work full-time, indicating that opportunity cost is an important factor. Net financial assets had a mixed impact. For married female caregivers, a lower amount of net financial assets decreases the labor participation rate. This tendency is reversed for married males. We also found that a flexible work style prevents a fall in labor participation rate due to caregiving. The government should introduce policies for drastic improvement in balancing nursing care and employment.