Health and Work Environment

15 March 2012Ageing Populations and New Opportunities for Businesses in Europe and

Japan

Miki KoharaOsaka Universitykohara@osipp.osaka-u.ac.jp

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I. Findings in Economic Researches (1)

Chief Concerni. Health affects labor force participation. -Huge findings, unquestionable ii. Labor force participation affects health. -Not undisputed

Health Status Work Incentives

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I. Findings in Economic Researches (2)

Related Issuesiii. Working conditions may determine worker’s

health and working incentives.

Health Status Work Incentives

firm’s interaction

work environment

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I. Findings in Economic Researches (3)

Related Issues (cont’d)iv. Being healthy and/or being employed can determine

welfare. Welfare, Happiness

Health Status Work Incentives

firm’s interaction

work environment4

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 51-62 Before-MR sample-Survey2: ex-employees after mandatory retirement (the retired, working(re-employed), working(the others)), Aged 59-82 After-MR sample

Data: Survey on a way of working for better retirement life (2011)

Data: Survey on a way of working for better retirement life (2011)

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

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2. The Japanese elderly have high incentives to work.

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c.f. distribution of working hours 0

.02

.04

.06

.08

.1D

en

sity

0 20 40 60 80Working hours (not retired)

Normal distribution of working hours (not retired)

0.0

5.1

Den

sity

0 20 40 60 80Working hours (re-employed)

Normal distribution of Working hours(re-emplyed)

0.0

2.0

4.0

6.0

8D

ensi

ty

0 20 40 60 80Working hours (other)

Normal distribution of Working hours(other working people)

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Before MR

After MR After MRRe-employed The others

2’. Why do they want to work?

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3. What kinds of preparations do workers make?

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

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Helpful programs offered by firms (after-MR sample)

3’’. Do firm’s programs make workers prepare for the retirement? (1)

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The effect of programs on preparation for work and life after retirement (after-MR sample)

Briefing for asset management 0.43481 * 0.02737 -0.1676Briefing for life (in general) after MR -0.0926 -0.30166 0.255002Briefing for jobs after MR 1.10198 *** 1.543329 *** 0.766907 **Advices by the retired on life after MR 0.65783 * -0.36794 -0.35384

Number of observations 484 480 480LR test for all the coeff=0 (P-statistics) 0 0.001 0.14Pseudo R2 0.169 0.146 0.066Log likelihood -223.29 -173.297 -261.733

think of futurework moreseriously

get licenses develop skillson PC and IT

Note. We estimate a single probit model for each preparation, controlling for individual’s characteristics and firm’s characteristics as additional explanatory variables. ***, **, and * show that a coefficient is statistically significant at 1, 5, 10%, respectively.

3’’. Do firm’s programs make workers prepare for the retirement? (2)

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The effect of programs on preparation for work and life after retirement (after-MR sample)

Briefing for asset management 1.43165 4.29 *** 0.015578 1.15Briefing for life (in general) after MR 0.80685 1.36 0.582738 *** 0.27Briefing for jobs after MR (omitted) 1.24 0.152492 0.44Advices by the retired on life after MR (omitted) 0.48 0.421188 1.44

Number of observations 297 484 478 484LR test for all the coeff=0 (P-statistics) 0.008 0.006 0.007 0.011Pseudo R2 0.522 0.096 0.085 0.086Log likelihood -17.599 -251.899 -274.256 -270.997

collectinformation onassetmanagement

raise familyinteractions

maintainhealth

collectinformation onstarting business

4. Life Satisfaction

• Life satisfaction (in general) {1-10}

Not working after MR working after MR

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0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Satisfaction (life) (not working after retirement)

Normal distribution of Satisfaction (life)

0.2

.4.6

.8D

ensi

ty

2 4 6 8 10Satisfaction (life) (re-emplyed&other working people)

Normal distribution of Satisfaction (life)

• Life satisfaction (concerned with family)

Not working after MR working after MR

0.2

.4.6

Den

sity

0 2 4 6 8 10Satisfaction (family) (not working after retirement)

Normal distribution of Satisfaction (family)

0.2

.4.6

Den

sity

0 2 4 6 8 10Satisfaction (family) (re-emplyed&other working people)

Normal distribution of Satisfaction (family)

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• Life satisfaction (concerned with work)

c.f. Working before MR Working after MR

16

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Satisfaction (work) (re-emplyed&other working people)

Normal distribution of Satisfaction (work)

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Satisfaction (work) (not retired)

Normal distribution of Satisfaction(work)(not retired)

c.f. Life Satisfaction (before MR sample)

0.2

.4.6

.8D

ensi

ty

2 4 6 8 10Satisfaction (life) (not retired)

Normal distribution of Satisfaction(life)(not retired)

0.2

.4.6

Den

sity

2 4 6 8 10Satisfaction (family) (not retired)

Normal distribution of Satisfaction(family)(not retired)

0.1

.2.3

.4.5

Den

sity

0 2 4 6 8 10Satisfaction (work) (not retired)

Normal distribution of Satisfaction(work)(not retired)

Life Satisfaction (in general)

Life Satisfaction (family)

Life Satisfaction (work)

4’. Preparation make people happy?

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after-MR samplesatisfaction (life) satisfaction (family) satisfaction (work)

Coef. Coef. Coef.

think of future work more seriously 0.02946 -0.05027 -0.10879get licenses 0.27419 0.54608 ** 0.53532develop skills on PC and IT -0.18083 -0.29125 0.11721collect information on starting business 0.4528 0.86564 1.40468 *collect information on asset management -0.17072 -0.24828 -0.2335save for future expenses -0.09182 0.02902 -0.07815have a hobby 0.0919 -0.03598 -0.46211raise neighborhood interactions 0.14707 -0.02239 -0.27389raise family interactions 0.44221 ** 0.65982 *** 0.34153learn for nursing care for the elderly -0.13962 -0.00404 -0.92861maintain health -0.48648 ** -0.22481 -0.11087do volunteer work -0.14316 0.08362 0.34576Number of obs 425 423 214P>chi2 0.000 0.000 0.000Pseudo R2 0.086 0.086 0.103

Note. We estimate a single ordered logit model for each satisfaction, controlling for individual’s characteristics and firm’s 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.

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Summary of Findings (cont’d)

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 firm’s programs can make the elderly happy.)

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Implications of our findings

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Happiness

Health Work

firm’s 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.