Health Capacity to Work at Older Ages: Evidence from Japan
This paper explores the extent to which older Japanese can potentially expand the labor supply, based on two analytic approaches: the Milligan-Wise and Cutler et al. methods. First, we examine how much older individuals could work if they worked as much as those with the same mortality rate in the past (the Milligan-Wise method). Second, we estimate how much older individuals could work if they worked as much as younger ones in similar health (the Cutler et al. method). Results from both of these methods underscore a large work capacity in old age in Japan. We further investigate differences in health capacity across education groups and find that highly educated individuals tend to have more capacity to work after they are 65 years of age.
This paper is part of the National Bureau of Economic Research’s International Social Security (ISS) Project, which is supported by the National Institute on Aging. We thank the members of the other country teams in the ISS project for helpful comments and suggestions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Health Capacity to Work at Older Ages: Evidence from Japan, Emiko Usui, Satoshi Shimizutani, Takashi Oshio. in Social Security Programs and Retirement around the World: The Capacity to Work at Older Ages, Wise. 2017