We investigate the inequality of income, consumption and savings for elderly households. We also analyze the relation between their employment status and consumption-saving behavior after the bubble economy in Japan. We use the microdata from the National Survey of Family Income and Expenditure in 1989, 1994, 1999 and 2004. Using kernel density estimation, we find that the households which use savings for their consumption have been increasing because of the decreasing in their labor income due to weak demand in the labor market for the elderly. Moreover, regression analyses suggest that the households with much nonlabor income retire and use savings for their living, whereas the households with little nonlabor income continue work and save some of the earnings for their consumption of goods in the near future.
