Option Value of Work, Health Status, and Retirement Decisions in Japan: Evidence from the Japanese Study on Aging and Retirement (JSTAR)

Abstract This article considers ways that torts decisions and doctrine may operate discriminatorily against the unhealthy. The discussion draws from one chapter of my recently published book, Healthism: Health Status Discrimination and the Law, specifically, the chapter on “Healthism in Private Law.” Healthism examines, across contexts, instances of discrimination based on health status, suggesting that in at least some circumstances, treating people differently because of their health status or health habits is normatively wrong and, thus, “healthist.” We discuss many examples in the book, but our ultimate goal is to introduce the term into the public lexicon and attune readers to additional examples, which, we maintain, abound: Consider non-smoking policies in public housing; airlines or movie theaters charging obese passengers for two seats; employers refusing to hire based on out-of-work health habits and conditions, including tobacco use and obesity; or a physician refusing to treat a patient with multiple conditions and a history of noncompliance. Each of these scenarios carries a potential for healthism.

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The puzzle of older workers’ employment: distance to retirement and health effects

International Journal of Manpower ◽

10.1108/ijm-02-2016-0042 ◽

2017 ◽

Vol 38 (1) ◽

pp. 45-61 ◽

Cited By ~ 5

Author(s):

Mareva Sabatier ◽

Bérangère Legendre

Keyword(s):

Health Status ◽

Job Search ◽

Older Workers ◽

Empirical Work ◽

Distance Effect ◽

Content Type ◽

Retirement Decisions ◽

Age Dependent ◽

Employment Rates

Purpose The purpose of this paper is to investigate the extent to which the distance to retirement affects low employment rates among European older workers, taking into account a key but often neglected determinant: health status. Design/methodology/approach To begin, the study amends McCall’s job search model, in which the job search behavior is treated as age dependent. Agents are heterogeneous according to two attributes: distance to retirement and health. The authors complete this theoretical analysis with an econometric analysis based on a French survey. Findings This model leads to clear predictions, such that the closer the retirement, the greater the reservation wage and the lower people’s search effort. Older workers also exhibit lower exit rates from unemployment, an effect that gets enhanced by health problems. The empirical work, based on a French survey, confirms the existence of a distance effect but also puts the greater impact of health status into perspective. The distance effect explains only part of the puzzle of older workers’ employment. Originality/value This paper proposes a theoretical and empirical analysis of the retirement decisions. It studies the distance effect but taking into account a neglected factor in the literature: health. Results clearly confirm the distance effect but highlight the reader role of health in retirement decisions.

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