Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young?: The Case of Japan

Takashi Oshio, 隆士 小塩, タカシ オシオ, Satoshi Shimizutani, 諭 清水谷, サトシ シミズタニ, Akiko Sato Oishi and 亜希子 大石

No 408, PIE/CIS Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: This paper examines whether social security programs induce a withdrawal of the elderly from the labor force and create jobs for the young in Japan. The key messages are summarized as follows. First, our historical overview suggests that young unemployment issues have not motivated social security reforms and that changes in provisions are not endogenous. Second, employment of the young tends to be positively, not negatively, associated with the LFP of the old. Third, an increase in the inducement to retire significantly discourages the old from staying in the labor force, but does not create jobs for the young.

Pages: 30 pages
Date: 2008-10
Note: 39630, The original version of this paper was presented at the conference on International Social Security Project (Phase V) organized by the National Bureau of Economic Research (NBER) in Lisbon, Portugal on May 23-24, 2008.
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Chapter: Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young? The Case of Japan (2010)
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