Author Name | XIE Mingjia (Liaoning University) / YIN Ting (Fellow, RIETI) / USUI Emiko (Hitotsubashi University) / ZHANG Yi (Central University of Finance and Economics) |
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Creation Date/NO. | January 2025 25-E-002 |
Research Project | Economic Analysis on the problem of an aging population and a declining birthrate in China and Japan in the COVID-19 pandemic |
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Abstract
We examine the heterogeneous effects of retirement on retirees’ health in Japan using the Marginal Treatment Effect framework. Using data from Japanese Study of Aging and Retirement (JSTAR), we find that the effect of retirement on health is trivial and statistically insignificant overall; however, there are heterogeneous effects with respect to the likelihood of being retired. Individuals who are less likely to retire are more prone to be negatively affected by retirement whereas those who are more likely to retire are more inclined to be positively affected. This finding suggests that policies restraining the likelihood of being retired, e.g., increasing the mandatory retirement age, would cause a negative health impact in the population.