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Social Security and Earlier Retirement in Japan: Cross-Sectional Evidence

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Author Info
Tetsuji Yamada
Tadashi Yamada
Abstract

The estimated elasticity of the probability of retirement with respect to social security retirement benefits declines as individuals age. The negative impact of social security retirement benefits on full-time workers is much greater than the impact on part-time workers for all age groups. Earnings test in Japan is, therefore, more effective on full-time workers than part-time workers among the elderly. Social security retirement benefits also provide the elderly with an incentive to prolong their unemployment status. The marginal effect of the market unemployment rate on full-time work is significantly larger than that on part-time work and both effects are negative. The e1asticit.y of retirement with respect to the market unemployment rate for those in their 60's is two to three times larger than those aged 70 and over. Retirement of those in their GO'S is quite responsive to changes in labor market condition.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2442.

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Date of creation: Nov 1987
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Handle: RePEc:nbr:nberwo:2442

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  1. Cropper, M L, 1981. "Measuring the Benefits from Reduced Morbidity," American Economic Review, American Economic Association, vol. 71(2), pages 235-40, May. [Downloadable!] (restricted)
  2. Hamermesh, Daniel S, 1984. "Life-Cycle Effects on Consumption and Retirement," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 353-70, July. [Downloadable!] (restricted)
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  3. Mitchell, Olivia S & Fields, Gary S, 1984. "The Economics of Retirement Behavior," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 84-105, January. [Downloadable!] (restricted)
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  4. Pellechio, Anthony J, 1979. "Social Security Financing and Retirement Behavior," American Economic Review, American Economic Association, vol. 69(2), pages 284-87, May.
  5. Wolfe, Barbara L., 1984. "Measuring disability and health," Journal of Health Economics, Elsevier, vol. 3(2), pages 187-193, August. [Downloadable!] (restricted)
  6. Rosen, Sherwin, 1981. "Valuing Health Risk," American Economic Review, American Economic Association, vol. 71(2), pages 241-45, May. [Downloadable!] (restricted)
  7. Gerking, Shelby & Schulze, William, 1981. "What Do We Know about Benefits of Reduced Mortality from Air Pollution Control?," American Economic Review, American Economic Association, vol. 71(2), pages 228-34, May. [Downloadable!] (restricted)
  8. Victor R. Fuchs, 1984. ""Though Much is Taken" -- Reflections on Aging, Health, and Medical Care," NBER Working Papers 1269, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Hanoch, Giora & Honig, Marjorie, 1983. "Retirement, Wages, and Labor Supply of the Elderly," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 131-51, April. [Downloadable!] (restricted)
  10. Michael D. Hurd & Michael J. Boskin, 1985. "The Effect of Social Security on Retirement in the Early 1970s," NBER Working Papers 0659, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Alan S. Blinder & Roger H. Gordon & Donald E. Wise, 1981. "Reconsidering the Work Disincentive Effects of Social Security," NBER Working Papers 0562, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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