Social Security and Retirement in Japan

Working Paper No. 6156 We provide the incentive mechanism of the public pension on the retirement decisions made in the Japanese labor market. Though the labor market participation of Japanese older persons is quite high by international standards, a principle incentive mechanism of the public pensi...

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Bibliographic Details
Published in:NBER Working Paper Series 1997-09, p.6156
Main Authors: Oshio, Takashi, Yashiro, Naohiro
Format: Article
Language:English
Subjects:
Economic theory
Labor market
Social security
Online Access:Get full text
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Summary:Working Paper No. 6156 We provide the incentive mechanism of the public pension on the retirement decisions made in the Japanese labor market. Though the labor market participation of Japanese older persons is quite high by international standards, a principle incentive mechanism of the public pension system in Japan affecting the retirement behavior has many things in common with those in other OECD countries. The pension benefits are designed actuarially unfair,' and the decision to work beyond age 60 is penalized. As the population ages quite rapidly, it is wasteful to maintain the disincentive mechanism arising from the actuarially unfair pension scheme for older persons.
ISSN:0898-2937
DOI:10.3386/w6156