【Empirical Seminar】Direct and Indirect Effects of Mandatory Retirement Systems on Workers of Different Ages

  • 研討會日期 : 2023-08-25
  • 時間 : 14:30
  • 主講人 : Professor Nobuhiko Nakazawa
  • 地點 : Conference Room B110
  • 演講者簡介 : Professor Nobuhiko Nakazawa received his PhD from the University of California, San Diego in 2020. He is currently an Associate Professor at Hitotsubashi University. His research interests are Public Economics, Labor Economics, and Applied Microeconomics.
  • 演講摘要 : This paper investigates the effects of raising the mandatory retirement age and introducing a continued employment system on both older workers and younger persons. In 2006, Japanese firms were required to raise the mandatory retirement age from 60 to at least 62 or to introduce a continued employment system that creates flexible positions for older employees and allows them to continue working at the same firm. Relying on quasi-experimental variation in exposure to the policy change according to pre-reform norms by industry, region, and firm size, we find that the reform was effective in terms of decreasing the separation rate of older workers. By contrast, the effects of the policy change on the exit rate and job-finding rate of younger people were limited; the impacts on younger persons at firms that were more affected by the policy change were similar to ones at firms that were less affected. Overall, the substitution effect on the young is modest compared with the direct effect on older individuals.