Why Do Japanese Workers Remain in the Labor Force So Long?
WP#2007-11
Abstract
As part of the search for answers to questions about what could be done to increase labor force participation rates among older workers in the United States, it makes sense to take a close look at evidence from Japan, one of the few industrial countries with a higher labor force participation rate among older workers than the United States. The gap is particularly large for male workers. The focus of this study is on six factors which help explain why Japanese workers remain in the labor force as long as they do: (1) perceived economic necessity; (2) the large fraction of workers who are self-employed; (3) a culture that puts a high value on being a productive member of the paid labor force, particularly for men; (4) the government’s role in facilitating the labor force participation of older workers; (5) the long healthy life expectancy; and (6) the distinctive corporate culture’s effects on marital dynamics among older generations. Based on the evidence from Japan, three policy suggestions are outlined for those seeking to increase labor force participation rates among older U.S. workers: (1) increase the financial incentive to workers who remain in the labor force; (2) increase the extent of government efforts to link older workers to prospective employers; and (3) improve public programs designed to foster efforts by older workers to become self-employed.
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John B. Williamson is a professor of sociology at Boston College, and Masa Higo is a Ph.D. student in the sociology department at Boston College. The research reported herein was performed pursuant to a grant from The Atlantic Philanthropies to the Center for Retirement Research at Boston College (CRR). The opinions and conclusions are solely those of the authors and should not be construed as representing the opinions or policy of The Atlantic Philanthropies, the CRR, or of Boston College. The authors want to thank Kiyoshi Adachi, Scott Bass, Masayuki Fujimura, Shari Grove, Nobuhiro Hiwatari, Elizabeth Johnson, Noriko Kameda, Kiyoko Okamura, Hisao Osada, Hiroki Sat?, Takehito Shimoda, Lauren Sommer, Atsuhiro Yamada, Fusako Yanagisawa, and Shigeyoshi Yoshida for their assistance in various ways with the research reported in this paper. We also owe a great deal to many other Japanese labor force participation policy experts who gave so generously of their time in connection with this project. The authors take full responsibility for any and all errors in this paper.