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Disability Pension Program and Labor Force Participation in Japan: A Historical Perspective

  • Oshio, Takashi
  • Shimizutani, Satoshi

This paper utilizes historical information to explore the relationship between labor force participation of middle aged and old people and the disability program in Japan. In particular, we explore the time series dimension to identify what has determined the trend in disability program participation over time and relate it with the labor supply. We find that mortality and health measures have been largely unrelated to the disability program participation rates. While major revisions to the disability program have slightly expanded the eligibility for DI programs, the program participation is still very low; thus, the effect on labor force participation is very limited in Japan, which is in contrast with some European countries that have high take up rates, inducing early retirement.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/18674/1/pie_dp485.pdf
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Paper provided by Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University in its series PIE/CIS Discussion Paper with number 485.

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Length: 40 p.
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:hit:piecis:485
Note: The original version of this paper was presented at the conference on the International Social Security Project (Phase VI) organized by the National Bureau of Economic Research (NBER) in Lisbon, Portugal, on May 28-29, 2010. We are grateful for the useful comments from participants at the meeting and financial support via a Grant-in-Aid for Specially Promoted Research from Japan’s Ministry of Education, Culture, Sports, Science, and Technology (grant number 22000001).
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  1. 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.
  2. ICHIMURA Hidehiko & SHIMIZUTANI Satoshi & HASHIMOTO Hideki, 2009. "JSTAR First Results 2009 Report," Discussion papers 09047, Research Institute of Economy, Trade and Industry (RIETI).
  3. Agar Brugiavini & Tullio Jappelli & Guglielmo Weber, 2002. "The Survey on Health, Aging and Wealth," CSEF Working Papers 86, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  4. Takashi Oshio & Akiko Sato Oishi & Satoshi Shimizutani, 2011. "Social Security Reforms And Labour Force Participation Of The Elderly In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 62(2), pages 248-271, 06.
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