Health Capacity to Work among Older Japanese Persons

Abstract

This study examines the health capacity to work among older persons in Japan—that is, how much longer older persons can work based on their health status using nationwide population-based surveys. We first examine how much older persons could work if they worked as much as those with the same mortality rate in the past (Milligan–Wise method). Second, we estimate how much older persons could work if they worked as much as younger persons in similar health (Cutler, Meara, and Richards-Shubik method). The results from both methods underscore a large work capacity among older persons in Japan. In particular, we observe a larger work capacity for the better educated and a negligible difference across regions. Moreover, we find an excess of part-time work, suggesting the need to enhance the flexibility of the choice of working style.