The two most important policies in Abenomics' "third arrow" — structural reform — are increasing labor mobility and keeping more women in the labor force so that they can help raise Japan's GDP. These two issues are linked at the hip, and the economic potential that could be unlocked is vast.
Amazingly the biggest reason is that Japan's female population still remains largely untapped as a source of economic growth. According to a Goldman Sachs study, if Japan could increase its employment rate to match its male employment rate of 80 percent, its workforce could potentially expand by 8.2 million people, boosting GDP by as much as 14 percent.
Yet without enough feasible options to manage both child care and work responsibilities, many women will continue to opt out of the labor force just when they are hitting stride — a loss Japan cannot afford when its population is shrinking.