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The effect of mandatory retirement on earnings profiles in Japan

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Author Info
Robert L. Clark
Naohiro Ogawa
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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Publisher Info
Article provided by ILR Review, ILR School, Cornell University 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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  1. Michael Bognanno & Ryo Kambayashi, 2007. "Trends in Worker Displacement Penalties in Japan: 1991-2005," IZA Discussion Papers 2954, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Satoshi Shimizutani & Izumi Yokoyama, 2006. "Has Japan's Long-term employment Practice Survived? New Evidence Emerging Since the 1990s," Hi-Stat Discussion Paper Series d06-182, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  3. Marcus Rebick, 2000. "Japanese Labour Markets: Can we Expect Significant Change?," Economics Series Working Papers 021, University of Oxford, Department of Economics. [Downloadable!]
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  4. 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. [Downloadable!]
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  5. 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. [Downloadable!]
  6. Michael Bognanno & Lisa Delgado, 2005. "Job Displacement Penalties in Japan," IZA Discussion Papers 1650, Institute for the Study of Labor (IZA). [Downloadable!]
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