Working Paper: NBER ID: w17052
Authors: Takashi Oshio; Satoshi Shimizutani
Abstract: This paper utilizes historical information to explore the relationship between labor force participation of middle aged and old people and the disability program in Japan. In particular, we explore the time series dimension to identify what has determined the trend in disability program participation over time and relate it with the labor supply. We find that mortality and health measures have been largely unrelated to the disability program participation rates. While major revisions to the disability program have slightly expanded the eligibility for DI programs, the program participation is still very low; thus, the effect on labor force participation is very limited in Japan, which is in contrast with some European countries that have high take up rates, inducing early retirement.
Keywords: No keywords provided
JEL Codes: H55; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| mortality and health measures (I14) | disability program participation rates (H53) |
| disability program participation rates (H53) | labor force participation in Japan (J21) |
| major revisions to the disability program (H53) | disability program participation rates (H53) |
| major revisions to the disability program (H53) | labor force participation in Japan (J21) |