Retirement consumption puzzle in Japan: Insights from pension and senior worker employment policy changes

IF 1.9 3区经济学 Q2 DEMOGRAPHY

Journal of the Economics of Ageing Pub Date : 2024-10-01 DOI:10.1016/j.jeoa.2024.100536

Tomoki Kitamura , Yoshimi Adachi

{"title":"Retirement consumption puzzle in Japan: Insights from pension and senior worker employment policy changes","authors":"Tomoki Kitamura , Yoshimi Adachi","doi":"10.1016/j.jeoa.2024.100536","DOIUrl":null,"url":null,"abstract":"<div><div>Previous studies in Japan have examined the retirement consumption puzzle (RCP) when mandatory retirement was prevalent. However, the retirement landscape has significantly evolved due to rising public pension ages and enhanced policies promoting employment among senior workers. This study explores household consumption behavior as a result of these recent shifts, particularly focusing on the increasingly common practice of partial retirement. We investigate household consumption during retirement, considering partial retirement enabled by policies allowing continued part-time work or self-employment beyond the mandatory retirement age, and address endogeneity issues between retirement and consumption. Our findings reveal that non-durable and food expenditures increase during partial retirement, driven by liquidity effects from substantial retirement lump-sum payments. These results challenge the traditional understanding of consumption patterns in an aging society, highlighting the impact of changes in work environments.</div></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"29 ","pages":"Article 100536"},"PeriodicalIF":1.9000,"publicationDate":"2024-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of the Economics of Ageing","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2212828X24000367","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"DEMOGRAPHY","Score":null,"Total":0}

引用次数: 0

Abstract

Previous studies in Japan have examined the retirement consumption puzzle (RCP) when mandatory retirement was prevalent. However, the retirement landscape has significantly evolved due to rising public pension ages and enhanced policies promoting employment among senior workers. This study explores household consumption behavior as a result of these recent shifts, particularly focusing on the increasingly common practice of partial retirement. We investigate household consumption during retirement, considering partial retirement enabled by policies allowing continued part-time work or self-employment beyond the mandatory retirement age, and address endogeneity issues between retirement and consumption. Our findings reveal that non-durable and food expenditures increase during partial retirement, driven by liquidity effects from substantial retirement lump-sum payments. These results challenge the traditional understanding of consumption patterns in an aging society, highlighting the impact of changes in work environments.

查看原文本刊更多论文

日本的退休消费之谜：养老金和老年工人就业政策变化的启示

日本以往的研究探讨了强制退休盛行时的退休消费难题（RCP）。然而，由于公共养老金领取年龄的提高和促进老年劳动者就业政策的加强，退休形势发生了重大变化。本研究探讨了近期这些变化所导致的家庭消费行为，尤其关注日益普遍的部分退休做法。我们调查了退休期间的家庭消费，考虑了允许在法定退休年龄后继续兼职工作或自雇的政策所促成的部分退休，并解决了退休与消费之间的内生性问题。我们的研究结果表明，非耐用消费品和食品支出在部分退休期间会增加，其驱动因素是大笔退休一次性支付带来的流动性效应。这些结果挑战了人们对老龄化社会消费模式的传统理解，突出了工作环境变化的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of the Economics of Ageing Multiple-

CiteScore

4.10

自引率

4.50%

发文量

审稿时长

49 days

期刊介绍： The Journal of the Economics of Ageing (JEoA) is an international academic journal that publishes original theoretical and empirical research dealing with the interaction between demographic change and the economy. JEoA encompasses both microeconomic and macroeconomic perspectives and offers a platform for the discussion of topics including labour, health, and family economics, social security, income distribution, social mobility, immigration, productivity, structural change, economic growth and development. JEoA also solicits papers that have a policy focus.