Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young?: The Case of Japan
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.
|Date of creation:||Oct 2008|
|Date of revision:|
|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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- 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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