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Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young?: The Case of Japan

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  • Oshio, Takashi
  • Shimizutani, Satoshi
  • Sato Oishi, Akiko

Abstract

This paper examines whether social security programs induce a withdrawal of the elderly from the labor force and create jobs for the young in Japan. The key messages are summarized as follows. First, our historical overview suggests that young unemployment issues have not motivated social security reforms and that changes in provisions are not endogenous. Second, employment of the young tends to be positively, not negatively, associated with the LFP of the old. Third, an increase in the inducement to retire significantly discourages the old from staying in the labor force, but does not create jobs for the young.

Suggested Citation

  • Oshio, Takashi & Shimizutani, Satoshi & Sato Oishi, Akiko, 2008. "Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young?: The Case of Japan," PIE/CIS Discussion Paper 408, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:piecis:408
    Note: July 2008, The original version of this paper was presented at the conference on International Social Security Project (Phase V) organized by the National Bureau of Economic Research (NBER) in Lisbon, Portugal on May 23-24, 2008.
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Shimizutani, Satoshi & Oshio, Takashi, 2009. "New Evidence on Initial Transition from Career Job to Retirement in Japan," PIE/CIS Discussion Paper 430, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    2. Shimizutani, Satoshi, 2011. "A new anatomy of the retirement process in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 141-152.
    3. 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)," CIS Discussion paper series 566, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    4. 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 Chapters,in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 497-535 National Bureau of Economic Research, Inc.
    5. Tsunao Okumura & Emiko Usui, 2014. "The effect of pension reform on pension-benefit expectations and savings decisions in Japan," Applied Economics, Taylor & Francis Journals, vol. 46(14), pages 1677-1691, May.
    6. Satoshi Shimizutani & Takashi Oshio, 2016. "Public Pension Benefits Claiming Behaviour: new Evidence from the Japanese Study on Ageing and Retirement," The Japanese Economic Review, Japanese Economic Association, vol. 67(3), pages 235-256, September.
    7. Takashi Oshio & Satoshi Shimizutani, 2012. "Disability Pension Program and Labor Force Participation in Japan: An Historical Perspective," NBER Chapters,in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 391-417 National Bureau of Economic Research, Inc.
    8. repec:eee:joecag:v:8:y:2016:i:c:p:67-75 is not listed on IDEAS
    9. ICHIMURA Hidehiko & SHIMIZUTANI Satoshi, 2011. "Retirement Process in Japan: New evidence from Japanese Study on Aging and Retirement (JSTAR)," Discussion papers 11080, Research Institute of Economy, Trade and Industry (RIETI).
    10. 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, vol. 28(C), pages 99-111.

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