The Effect of the Employee Pension on the Labor Supply of the Japanese Elderly

by Atsushi Seike


Download eBook for Free

FormatFile SizeNotes
PDF file 1.8 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback64 pages $23.00 $18.40 20% Web Discount

In Japan today, the ratio of elderly to nonelderly in the general population is increasing at a rate nearly twice that of other developed nations. This rapidly aging population has given rise to two important policy issues in Japan: (1) the need to maintain the fiscal health of the pension system as the demand for retirement benefits increases, and (2) the need to create employment opportunities for older people who are able and willing to continue working. Both issues are related to, and affected by, the effects of public pensions on the labor supply, but little is known about the way these factors interrelate in Japan. To begin to fill this information gap, this Note formulates labor supply models, with corrections for selectivity bias, based on an estimate of the effects of the employee pension on both the decision to remain in the labor force and the number of hours worked per week. The study's findings indicate that the employee pension has a significant negative effect on the decision of older Japanese workers to remain in the labor force and on the average number of hours worked by older workers.

This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.