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Social Security Programs and the Elderly Employment in Japan

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  • Takashi Oshio
  • Akiko S. Oishi
  • Satoshi Shimizutani

Abstract

We examine how the change in the trend of the elderly’s employment rates has been associated with changes in incentives of social security and its related programs in Japan since the 1980s. We compute the tax force to retire early, using the institutional parameters and synthetic earnings profiles, and juxtapose the tax force measures and the elderly employment rates during 1980 and 2016. Our results suggest that a reduction in the tax force to retire early due to a series of social security reforms has been associated with the recent recovery of the employment rates for men aged 60 years and over as well as the increasing upward trend in the employment rates for women aged 55-64 years.

Suggested Citation

  • Takashi Oshio & Akiko S. Oishi & Satoshi Shimizutani, 2018. "Social Security Programs and the Elderly Employment in Japan," NBER Working Papers 25243, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25243
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    References listed on IDEAS

    as
    1. Satoshi Shimizutani & Takashi Oshio, 2016. "Public Pension Benefits Claiming Behaviour: new Evidence from the Japanese Study on Ageing and Retirement," The Japanese Economic Review, Springer, vol. 67(3), pages 235-256, September.
    2. Ayako Kondo & Hitoshi Shigeoka, 2017. "The Effectiveness of Demand-Side Government Intervention to Promote Elderly Employment: Evidence from Japan," ILR Review, Cornell University, ILR School, vol. 70(4), pages 1008-1036, August.
    3. Yukiko Abe, 2001. "Employees' Pension Benefits and the Labor Supply of Older Japanese Workers, 1980s-1990s," NBER Chapters, in: Aging Issues in the United States and Japan, pages 273-306, National Bureau of Economic Research, Inc.
    4. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1.
    5. Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35, National Bureau of Economic Research, Inc.
    6. 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, June.
    7. 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.
    8. Seiritsu Ogura & Toshiaki Tachibanaki & David A. Wise, 2001. "Aging Issues in the United States and Japan," NBER Books, National Bureau of Economic Research, Inc, number ogur01-1.
    9. Jonathan Gruber & David A. Wise, 2007. "Social Security Programs and Retirement around the World: Fiscal Implications of Reform," NBER Books, National Bureau of Economic Research, Inc, number grub07-1.
    10. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1.
    11. Jonathan Gruber & David A. Wise, 2007. "Introduction to "Social Security Programs and Retirement around the World: Fiscal Implications of Reform"," NBER Chapters, in: Social Security Programs and Retirement around the World: Fiscal Implications of Reform, pages 1-42, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Xu, Jing & Wang, Xinmei, 2018. "Working Longer in China: Implicit Tax or Subsidy?," CIS Discussion paper series 675, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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