We investigate how Japanese men aged 60-74 adjust their workforce attachment after beginning to receive a public pension. Men who were employees at age 54 gradually move to part-time work or retire after beginning to receive pension benefits; those who continue working are more likely to be underemployed. Men self-employed at age 54, however, neither retire nor reduce their working hours even after beginning to receive pension benefits; these men are more likely to be overemployed. In contrast, U.S. men retire or move to part-time when they first claim Social Security; those who continue working as employees after Social Security starts are unlikely to be either over- or underemployed. Therefore, unlike U.S. men, Japanese men are not choosing the optimal pensionable age and labor hours to maximize their intertemporal utility.
Health and Retirement Study (HRS) pension benefits Japanese Study on Aging and Retirement (JSTAR) work hours hours constraints Japan