Work Capacity of Older Adults in Japan

This study examines the work capacity of older adults in Japan. First, we estimate the relationship between a variety of health indicators and work status.Work status is divided into full-time work, part-time work, and retired for those in their 50s who are not yet age-eligible for public pension benefits. Then, we simulate work capacity for those in their pension-eligible 60s and the first half of the 70s. The simulation results indicate a large work capacity. The health status of those in their 60s suggests that their labor force participation rate could be increased substantially by reforming social security programs.