IDEAS home Printed from https://ideas.repec.org/a/eee/joecag/v29y2024ics2212828x24000367.html
   My bibliography  Save this article

Retirement consumption puzzle in Japan: Insights from pension and senior worker employment policy changes

Author

Listed:
  • Kitamura, Tomoki
  • Adachi, Yoshimi

Abstract

Previous studies in Japan have examined the retirement consumption puzzle (RCP) when mandatory retirement was prevalent. However, the retirement landscape has significantly evolved due to rising public pension ages and enhanced policies promoting employment among senior workers. This study explores household consumption behavior as a result of these recent shifts, particularly focusing on the increasingly common practice of partial retirement. We investigate household consumption during retirement, considering partial retirement enabled by policies allowing continued part-time work or self-employment beyond the mandatory retirement age, and address endogeneity issues between retirement and consumption. Our findings reveal that non-durable and food expenditures increase during partial retirement, driven by liquidity effects from substantial retirement lump-sum payments. These results challenge the traditional understanding of consumption patterns in an aging society, highlighting the impact of changes in work environments.

Suggested Citation

  • Kitamura, Tomoki & Adachi, Yoshimi, 2024. "Retirement consumption puzzle in Japan: Insights from pension and senior worker employment policy changes," The Journal of the Economics of Ageing, Elsevier, vol. 29(C).
    • Handle: RePEc:eee:joecag:v:29:y:2024:i:c:s2212828x24000367
    DOI: 10.1016/j.jeoa.2024.100536
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X24000367
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jeoa.2024.100536?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Retirement consumption puzzle; Senior worker employment; Partial retirement; Wealth accumulation;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joecag:v:29:y:2024:i:c:s2212828x24000367. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/the-journal-of-the-economics-of-ageing .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.