NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effects of Japanese Social Security Retirement Benefits on Personal Savings and Elderly Labor Force Behavior

Tetsuji Yamada, Tadashi Yamada

NBER Working Paper No. 2661
Issued in July 1988
NBER Program(s):   LS

Using Japanese annual time series data covering the period from 1946to 1982, this paper shows that social security wealth depresses personal savings. The effect was a reduction of approximately 143 thousand yen per capita wealth in real terms from 1970 to 1980. However, declining labor force participation of the elderly (i.e., earlier retirement), stimulates personal saving by an estimated 12 thousand yen over the same period. The study found that the benefit effect dominates the retirement effect. In addition, this study has identified a negative interdependency between the personal savings and labor retirement behaviors of the elderly; that is, an individual saves more before retirement if he expects to stay a shorter time in the labor market, and vice versa.

download in pdf format
   (187 K)

email paper

This paper is available as PDF (187 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2661

Published: Japan and the World Economy, Vol. 2, pp. 1-36, Winter 1990. Elsevier Science Publishers (North-Holland). citation courtesy of

Users who downloaded this paper also downloaded these:
Gustman and Steinmeier w6681 Effects of Pensions on Saving: Analysis with Data from the Health and Retirement Study
Gustman and Steinmeier w9183 The Social Security Early Entitlement Age in a Structural Model of Retirement and Wealth
Oshio and Oishi Social Security and Retirement in Japan: An Evaluation Using Micro-Data
Seike Labor Market Implications of Social Security: Company Pension Plans, Public Pensions, and Retirement Behavior of the Elderly in Japan
Yashiro and Oshio Social Security and Retirement in Japan
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us