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Health Effects of Retirement Policy Changes: Evidence from Japan

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Listed:
  • Mingjia XIE
  • Ting YIN
  • Emiko USUI
  • Yi ZHANG

Abstract

We evaluate the health effects of hypothetical retirement policy changes, accounting for varied individual responses to policy changes and the heterogeneous health impacts of retirement. Using a Policy Relevant Treatment Effect (PRTE) framework with Japanese data, we find a policy’s net average health impact depends critically on its scale. Policies which cause marginal downward shifts in retirement rate improve average population health. Conversely, policies which induce large, substantial shifts lead to a net health decline as it faces individuals who stand to gain from retiring to continue working. Our findings highlight the importance of “selection on gains†and suggest that policymakers should favor incremental incentives over broad mandates.

Suggested Citation

  • Mingjia XIE & Ting YIN & Emiko USUI & Yi ZHANG, 2025. "Health Effects of Retirement Policy Changes: Evidence from Japan," Discussion papers 25102, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:25102
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    References listed on IDEAS

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