Health and Work Environment 15 March 2012 Ageing Populations and New Opportunities for Businesses in Europe and Japan Miki Kohara Osaka University 1

I. Findings in Economic Researches (1) Chief Concern i.Health affects labor force participation. -Huge findings, unquestionable ii.Labor force participation affects health. -Not undisputed Health Status Work Incentives 2

I. Findings in Economic Researches (2) Related Issues iii. Working conditions may determine workers health and working incentives. Health Status Work Incentives firms interaction work environment 3

I. Findings in Economic Researches (3) Related Issues (contd) iv.Being healthy and/or being employed can determine welfare. Welfare, Happiness Health Status Work Incentives firms interaction work environment 4

II. What do we find for the Japanese elderly? Survey Target -conducted in a large manufacturing company in Japan -Survey1: employees before mandatory retirement Aged Before-MR sample -Survey2: ex-employees after mandatory retirement (the retired, working(re-employed), working(the others)), Aged After-MR sample Data: Survey on a way of working for better retirement life (2011) 5

1. What kinds of anxiety the workers have for the life after retirement? 6

2. The Japanese elderly have high incentives to work. 7

c.f. distribution of working hours 8 Before MR After MR Re-employed The others

2. Why do they want to work? 9

3. What kinds of preparations do workers make? 10

3. Which program offered by the firm was helpful? 11

3. Do firms programs make workers prepare for the retirement? (1) 12 Note. We estimate a single probit model for each preparation, controlling for individuals characteristics and firms characteristics as additional explanatory variables. ***, **, and * show that a coefficient is statistically significant at 1, 5, 10%, respectively.

3. Do firms programs make workers prepare for the retirement? (2) 13

4. Life Satisfaction Life satisfaction (in general) {1-10} Not working after MR working after MR 14

Life satisfaction (concerned with family) Not working after MR working after MR 15

Life satisfaction (concerned with work) c.f. Working before MR Working after MR 16

c.f. Life Satisfaction (before MR sample) Life Satisfaction (in general) Life Satisfaction (family) Life Satisfaction (work)

4. Preparation make people happy? 18 Note. We estimate a single ordered logit model for each satisfaction, controlling for individuals characteristics and firms characteristics as additional explanatory variables. ***, **, and * show that a coefficient is statistically significant at 1, 5, 10%, respectively.

Summary of Findings Our survey conducted in a manufacturing company in Japan suggests: 1.Many elderly people want to continue working even after mandatory retirement. 2.Pension is one of the important factors to determine labor force participation of the elderly. Health is another important factor. 3.Being employed may make people healthy (at least people believe so). Being employed can make the elderly happy. 19

Summary of Findings (contd) 4.People regret --- should have got licenses, saved more, had a hobby, maintained health. 5.Some programs offered by a firm were indeed helpful for the workers to prepare for the life after retirement. 6.Preparation for the retirement can make the elderly happy. (+3…Some firms programs can make the elderly happy.) 20

Implications of our findings 21 Happiness Health Work firms interaction Preparation are meaningful. We can and should make the employees prepare for the better life in old age. Being employed in old age seems important in Japan. In European countries, too? – We should be careful about the meaning of being employed.