Employees' Pension Benefits and the Labor Supply of Older Japanese Workers, 1980s–1990s

Yukiko Abe

in Aging Issues in the United States and Japan

Published by University of Chicago Press

Published in print September 2001 | ISBN: 9780226620817
Published online February 2013 | e-ISBN: 9780226620831 | DOI:
Employees' Pension Benefits and the Labor Supply of Older Japanese Workers, 1980s–1990s

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The Japanese government has instituted several modifications to the pension system to cope with the country's rapidly aging population. For example, whereas full social security benefits used to start at age sixty for men covered by the Employees' Pension program, reductions in benefits to be phased in between 2001 and 2013 mean that men aged sixty to sixty-four and covered by Employee Pension insurance (EP) will receive smaller pensions. Such reductions, as well as other changes in social security benefits and taxes, are likely to affect the number of older persons active in the labor market during the next few decades. This chapter is organized as follows. Section 9.2 presents an overview of the trend in the labor supply of Japanese men aged sixty to sixty-four. Section 9.3 explains the EP benefit rule for active workers and reviews its history from the 1980s to the present. Section 9.4 discusses the Survey on Employment Conditions of Older Persons (SECOP), which is the data set used in this chapter. Section 9.5 explains the descriptive statistics of work-mode choice and hours. Section 9.6 presents estimates from a reduced-form analysis. The chapter concludes with a discussion of the policy implications of the findings.

Keywords: aging population; pension system; labor market; social security benefits; Employee Pension insurance

Chapter.  11680 words.  Illustrated.

Subjects: Economic History

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