The Effect of Household Structure on the Employment Behavior of Elderly Male Workers
Hiroshi OGAWA

This study is based on micro data from the Employment Status Survey of the Elderly (1983, 1988, 1992). The findings are twofold. First, the pension paid to elderly workers acts as a kind of employment subsidy. Firms are willing to employ an elderly male if he is receiving a pension because they can lower his wages by the pension amount. This means that the change in the payment schedule of pensions offered to elderly workers has a substantial effect on employment. Second, the structure of a household has a significant impact on employment behavior. Between 1988 and 1993 changes in household structure had a significant effect on elderly malesf increased participation in the workforce. These changes had an even greater effect on employment than changes in pension benefits, which can explain almost all shifts in workforce participation before 1986.

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