TY  - JOUR
AU  - Shimizutani, Satoshi
AU  - Oshio, Takashi
AU  - Fujii, Mayu
TI  - Option Value of Work, Health Status, and Retirement Decisions in Japan: Evidence from the Japanese Study on Aging and Retirement (JSTAR)
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 20001
PY  - 2014
Y2  - March 2014
DO  - 10.3386/w20001
UR  - http://www.nber.org/papers/w20001
L1  - http://www.nber.org/papers/w20001.pdf
N1  - Author contact info:
Satoshi Shimizutani
Institute for International Policy Studies
5th floor, Toranomon 5 Mori Building,
1-17-1 Toranomon, Minato-ku
Tokyo 105-0001 Japan
E-Mail: sshimizutani@gmail.com

Takashi Oshio
E-Mail: oshio@ier.hit-u.ac.jp

Mayu Fujii
National Institute of Population
  and Social Security
Hibiya Kokusai Building 6th Floor
2-2-3 Uchisaiwaicyo, Chiyoda-ku
Tokyo 100-0011
Japan
E-Mail: fujii-mayu@ipss.go.jp
M1  - published as Satoshi Shimizutani, Takashi Oshio, Mayu Fujii. "Option Value of Work, Health Status, and Retirement Decisions in Japan: Evidence from the Japanese Study on Aging and Retirement (JSTAR)," in David A. Wise, editor, "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement" University of Chicago Press (2016)

M3  - presented at "International Social Security", September 26-28, 2013
AB  - This study examined the factors that affect the retirement decisions of the middle-aged and elderly in Japan, focusing especially on their earnings, public pension benefits, and health status. Using two-year panel data from the JSTAR and applying the OV model proposed by Stock and Wise (1990a, 1990b), we found that the probability of retirement has a negative and significant correlation with the OV of work, and that correlation does not depend on the health status. Our counter-factual simulation based on the OV model showed that, if the probability of being enrolled in the disability program were zero, the average years of work when individuals are in their 50s and 60s would increase. However, it should be emphasized that, in Japan--where being enrolled in the disability program is unlikely to make one a candidate for the retirement path--the result of this simulation does not indicate that satisfying the eligibility criteria for disability pension receipts will more stringently increase the labor supplied by the middle-aged and elderly.
ER  -