The Effects of Increasing the Eligibility Age for Public Pension on Individual Labor Supply
Abstract
Abstract This work investigates the effects of increasing the eligibility age for public pension on workers’ retirement decisions, focusing on recent Japanese public pension reforms. In Japan, the pensionable age for Employees’ Pension Insurance benefits gradually increased from 60 to 65 years for males over the course of a decade. Using a large set of individual-level data and a regression discontinuity design, I find that raising the pensionable age for flat-rate benefits by one year increases male employment at the critical ages by about seven to eight percentage points. Individual labor supply at the critical ages is heterogeneous across degrees of closeness to the implementation date.