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The Effect of Mandatory Retirement on Earnings Profiles in Japan

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  • 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.

Suggested Citation

  • Robert L. Clark & Naohiro Ogawa, 1992. "The Effect of Mandatory Retirement on Earnings Profiles in Japan," ILR Review, Cornell University, ILR School, vol. 45(2), pages 258-266, January.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:2:p:258-266
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    Cited by:

    1. Wehn‐Jyuan Tsai, 2018. "Mandatory Retirement and Older Worker Employment Decisions: Evidence from a Matched Difference‐in‐Differences Estimator," Pacific Economic Review, Wiley Blackwell, vol. 23(4), pages 590-608, October.
    2. HAMAAKI Junya & HORI Masahiro & MAEDA Saeko & MURATA Keiko, 2010. "Is the Japanese employment system degenerating? Evidence from the Basic Survey on Wage Structure," ESRI Discussion paper series 232, Economic and Social Research Institute (ESRI).
    3. 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.
    4. Kawaguchi, Daiji & Mori, Yuko, 2016. "Why has wage inequality evolved so differently between Japan and the US? The role of the supply of college-educated workers," Economics of Education Review, Elsevier, vol. 52(C), pages 29-50.
    5. Robert Clark & Rikiya Matsukura & Naohiro Ogawa, 2014. "Retirement Transitions In Japan," Discussion Papers 14-013, Stanford Institute for Economic Policy Research.

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