| Author Name | SHIMIZUTANI Satoshi (Consulting Fellow, RIETI) /OSHIO Takashi (Institute of Economic Research, Hitotsubashi University) |
|---|---|
| Creation Date/NO. | March 2013 13-E-016 |
| Research Project | Toward a Comprehensive Resolution of the Social Security Problem: A new economics of aging |
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Abstract
We explore the labor supply effect of the social security earnings test in Japan on those aged 65-69 years through a combined examination of the elimination of the earnings test in 1985 and its reinstatement in 2002. We present evidence showing that the effects of changes in the earnings test on the labor supply of the elderly are not symmetric, controlling for changes in the attributes of workers and firms. The repeal of the earnings test in 1985 did affect the earnings distribution of the elderly (especially for men), while its reinstatement in 2002 did not alter the earnings distribution.
