Japan’s Aging Population: How Do Stock Market Fluctuations Influence Expected Retirement Age

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Abstract/Contents

Abstract: As Japan’s population continues to age, the national pension plans are starved of new entrants into the labor market due to low fertility rates and a historically strict immigration policies. This problem is exacerbated by mandatory retirement laws that remove workers from their positions of employment when they could be providing value-additive labor. In this paper, I use panel data from the Japan Study of Aging and Retirement (JSTAR) in 10 municipalities to understand how the Nikkei 225 performance impacts expected age of retirement. Controlling for macroeconomic and descriptive variables, I find evidence of a negative relationship between Nikkei performance and expected age of retirement, where a 10 percent year-over-year increase in the Nikkei 225 results in an approximate 2.5 month decrease in expected age of retirement. I do not find evidence that the estimates differ when splitting the population by age, gender, stock ownership, occupational physical intensity, or educational attainment. These results are similar in magnitude and sign to that of past studies examining the relationship between stock market performance and retirement expectations

Author	Yaegashi, Kenta Robert
Degree granting institution	Stanford University, Department of Economics
Thesis advisor	Goda, Gopi Shah

Subject	Stanford Department of Economics
Subject	Retirement
Subject	Stock Market
Subject	Japan
Subject	Economics of Aging
Subject	Stanford Department of Economics
Genre	Text
Genre	Thesis

Location	https://purl.stanford.edu/cy480rn4174

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License: This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

Preferred citation: Yaegashi, Kenta Robert. (2020). Japan’s Aging Population: How Do Stock Market Fluctuations Influence Expected Retirement Age?. Stanford Digital Repository. Available at: https://purl.stanford.edu/cy480rn4174

Stanford University, Department of Economics, Honors Theses

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