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Abstract

Vol. 51, No. 1, pp. 1-14 (2000)

“Wages and Employment After Mandatory Retirement”
Isao Ohashi (The Graduate School of Economics, Department of Economics, Hitotsubashi University)

This paper analyzes the determinations of wages, hours worked and employment for the elderly after mandatory retirement in the framework of the Nash bargaining solutions. Firms and the elderly bargain over the rent to the relationship that arises mainly from firm-specific skills. The analysis particularly focuses on the effects of social institutions such as the zaishoku (in-work) pension plan and the kounennrei koyou keizoku (continued employment of the elderly) benefits on wages, hours worked and employment. The main conclusion is that the social institutions mentioned above function as work-sharing devices and make hours worked shorter for the elderly and enlarge their employment.