We provide the incentive mechanism of the public pension on the retirement decisions made in the Japanese labor market. Though the labor market participation of Japanese older persons is quite high by international standards, a principle incentive mechanism of the public pension system in Japan...

In this paper we investigate why and to what extent the government should have a social security trust fund, and how it should manage the fund in the face of demographic shocks, based on a simple overlapping-generations model. We show that, given an aging population, a trust fund in some form...