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Are Japanese Men of Pensionable Age Underemployed or Overemployed?

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  • USUI Emiko
  • SHIMIZUTANI Satoshi
  • OSHIO Takashi

Abstract

We investigate how Japanese men aged 60-74 adjust their workforce attachment after beginning to receive a public pension. Men who were employees at age 54 gradually move to part-time work or retire after beginning to receive pension benefits; those who continue working are more likely to be underemployed. Men self-employed at age 54, however, neither retire nor reduce their working hours even after beginning to receive pension benefits; these men are more likely to be overemployed. In contrast, U.S. men retire or move to part-time when they first claim Social Security; those who continue working as employees after Social Security starts are unlikely to be either over- or underemployed. Therefore, unlike U.S. men, Japanese men are not choosing the optimal pensionable age and labor hours to maximize their intertemporal utility.

Suggested Citation

  • USUI Emiko & SHIMIZUTANI Satoshi & OSHIO Takashi, 2015. "Are Japanese Men of Pensionable Age Underemployed or Overemployed?," Discussion papers 15099, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15099
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    1. Oshio, Takashi & Usui, Emiko, 2018. "How does informal caregiving affect daughters’ employment and mental health in Japan?," Journal of the Japanese and International Economies, Elsevier, vol. 49(C), pages 1-7.
    2. Emiko Usui & Satoshi Shimizutani & Takashi Oshio, 2017. "Health Capacity to Work at Older Ages: Evidence from Japan," NBER Chapters, in: Social Security Programs and Retirement around the World: The Capacity to Work at Older Ages, pages 219-241, National Bureau of Economic Research, Inc.
    3. Oshio, Takashi & Usui, Emiko, 2017. "The effects of providing eldercare on daughters’ employment and mental health in Japan," CIS Discussion paper series 661, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    4. Nishimura, Yoshinori, 2016. "Did Government Intervention on Firm’s Employment Policies Have an Effect on the Employment of Elderly Workers?," MPRA Paper 73444, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • I10 - Health, Education, and Welfare - - Health - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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