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The effect of mandatory retirement on earnings profiles in Japan

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  • Robert L. Clark
  • Naohiro Ogawa
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    Abstract

    Using data from the Japanese Basic Survey on Wage Structure for 1981 and 1986, the authors estimate the effect of the age of mandatory retirement on the rate of growth of earnings with job tenure in Japan. The results indicate that an increase in the age of mandatory retirement reduces the rate of growth of earnings. This finding suggests that the existence of long-term employment contracts is a more likely explanation of the steep earnings-experience profiles of Japanese workers than is the specific human capital model. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 45 (1992)
    Issue (Month): 2 (January)
    Pages: 258-266

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    Handle: RePEc:ilr:articl:v:45:y:1992:i:2:p:258-266

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    Cited by:
    1. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Maia Güell, 2004. "Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data," CEP Discussion Papers dp0646, Centre for Economic Performance, LSE.
    2. Michael Bognanno & Ryo Kambayashi, 2007. "Trends in Worker Displacement Penalties in Japan: 1991-2005," Hi-Stat Discussion Paper Series d07-218, Institute of Economic Research, Hitotsubashi University.
    3. Daniel van Vuuren & Paul de Hek, 2010. "Are older workers overpaid? A literature review," CPB Discussion Paper 165, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Joseph F. Quinn & Timothy Smeeding, 1997. "Cross-National Patterns of Labor Force Withdrawal," Boston College Working Papers in Economics 371, Boston College Department of Economics.
    5. Bognanno, Michael L. & Delgado, Lisa, 2005. "Job Displacement Penalties in Japan," IZA Discussion Papers 1650, Institute for the Study of Labor (IZA).

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