Are Japanese Men of Pensionable Age Underemployed or Overemployed?

32 Pages Posted: 11 Jan 2016

See all articles by Emiko Usui

Emiko Usui

Hitotsubashi University - Institute of Economic Research; IZA Institute of Labor Economics

Satoshi Shimizutani

Hitotsubashi University - Institute of Economic Research

Takashi Oshio

Hitotsubashi University

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.

Keywords: Japanese Study on Aging and Retirement (JSTAR), pension benefits, Health and Retirement Study (HRS), work hours, hours constraints, Japan

JEL Classification: J26, I10, H55

Suggested Citation

Usui, Emiko and Shimizutani, Satoshi and Oshio, Takashi, Are Japanese Men of Pensionable Age Underemployed or Overemployed?. IZA Discussion Paper No. 9620, Available at SSRN: https://ssrn.com/abstract=2713041 or http://dx.doi.org/10.2139/ssrn.2713041

Emiko Usui (Contact Author)

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Satoshi Shimizutani

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan

Takashi Oshio

Hitotsubashi University ( email )

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