THE LABOR SUPPLY EFFECT OF SOCIAL SECURITY EARNINGS TEST REVISITED: NEW EVIDENCE FROM ITS ELIMINATION AND REVIVAL IN JAPAN
Evidence on the effect of the social security earnings test on the labor supply of the elderly continues to be mixed. We utilize microlevel data compiled by the Japanese government in order to examine the labor supply effect for those aged 6569 before and after two majo reforms of the social security earnings test in Japan: its elimination in 1985 and its revival in 2002. We provide little evidence that the changes in the earnings test affected the wage distribution of the elderly after controlling for changes in the attributes of workers and firms. At the same time, the direct survey responses to the effect of the revival in 2002 reveals a large effect on the labor supply of the elderly. These empirical findings indicate the risk that a traditional bunch analysis underestimates the labor supply effect when it is obscured by measurement errors or labor market rigidities.
Year of publication: |
2008-11
|
---|---|
Authors: | Shimizutani, Satoshi ; Oshio, Takashi |
Institutions: | Faculty of Economics, Kobe University |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Japanese Employment System and Wage Structure
Mitani, Naoki, (2012)
-
Child poverty as a determinant of life outcomes:Evidence from nationwide surveys in Japan
Oshio, Takashi, (2009)
-
Evaluations by parents of education reforms: Evidence from a parent survey in Japan
Oshio, Takashi, (2008)
- More ...