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Social Security Earnings Test and the Labor Supply of the Elderly: New evidence from unique survey responses in Japan

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  • SHIMIZUTANI Satoshi

Abstract

This study proposes an alternative approach of utilizing direct responses to a survey on the social security earnings test for the elderly to provide new evidence on the sensitivity of the labor supply decision of workers aged between 60 and 64 with respect to the test. Our empirical results show a discouraging effect on working in a large proportion of these workers in Japan, even after correcting for the observed attributes of individuals who reported to be either affected or unaffected.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 13017.

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Length: 36 pages
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:eti:dpaper:13017

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References

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  1. Emmanuel Saez, 1999. "Do Taxpayers Bunch at Kink Points?," NBER Working Papers 7366, National Bureau of Economic Research, Inc.
  2. Steven J. Haider & David S. Loughran, 2008. "The Effect of the Social Security Earnings Test on Male Labor Supply: New Evidence from Survey and Administrative Data," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
  3. Satoshi Shimizutani & Takashi Oshio, 2008. "The Labor Supply Effect Of Social Security Earnings Test Revisited: New Evidence From Its Elimination And Revival In Japan," Discussion Papers 0822, Graduate School of Economics, Kobe University.
  4. Leora Friedberg, 1999. "The Labor Supply Effects of the Social Security Earnings Test," NBER Working Papers 7200, National Bureau of Economic Research, Inc.
  5. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche, Universite de Montreal, Departement de sciences economiques 9406, Universite de Montreal, Departement de sciences economiques.
  6. Richard Disney & Sarah Smith, 2002. "The Labour Supply Effect of the Abolition of the Earnings Rule for Older Workers in the United Kingdom," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C136-C152, March.
  7. Thomas Lemieux, 2002. "Decomposing changes in wage distributions: a unified approach," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 646-688, November.
  8. Shimizutani, Satoshi & Oshio, Takashi, 2009. "New Evidence on Initial Transition from Career Job to Retirement in Japan," PIE/CIS Discussion Paper, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University 430, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  9. Satoshi Shimizutani & Izumi Yokoyama, 2009. "Japan's Long-Term Employment Practice Survived? Developments Since the 1990s," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 62(3), pages 313-326, April.
  10. Burtless, Gary & Moffitt, Robert A, 1985. "The Joint Choice of Retirement Age and Postretirement Hours of Work," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 3(2), pages 209-36, April.
  11. Baker, Michael & Benjamin, Dwayne, 1999. "How do retirement tests affect the labour supply of older men?," Journal of Public Economics, Elsevier, vol. 71(1), pages 27-51, January.
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Cited by:
  1. Satoshi Shimizutani & Takashi Oshio & Mayu Fujii, 2014. "Option Value of Work, Health Status, and Retirement Decisions in Japan: Evidence from the Japanese Study on Aging and Retirement (JSTAR)," NBER Working Papers 20001, National Bureau of Economic Research, Inc.
  2. SHIMIZUTANI Satoshi & FUJII Mayu & OSHIO Takashi, 2012. "Option Value of Work, Health Status, and Retirement Decisions: New evidence from the Japanese Study on Aging and Retirement (JSTAR)," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12050, Research Institute of Economy, Trade and Industry (RIETI).
  3. Shimizutani, Satoshi & Oshio, Takashi, 2013. "Revisiting the labor supply effect of social security earnings test: New evidence from its elimination and reinstatement in Japan," Japan and the World Economy, Elsevier, Elsevier, vol. 28(C), pages 99-111.

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