Determinants of Employing Older People: A Comparative Analysis from Asia

Abstract

This paper analyzes factors that influence the employment of older people in Japan and South Korea, specifically, the similarities and differences in both countries. The dataset for this study was compiled from two surveys administered by each country. Heckman (2SLS) estimation model was used in order to resolve sample selection bias and the results indicate that pension and non-pension income have negative effects on employment of older people in both countries. Older people have a low probability of employment if they are of poor health or are women, and the probability of employment declines every year in Japan but increases in South Korea.Furthermore, the effects of family variables on employment of older people are different in both countries. By comparing these variables, this paper shows the factors affecting employment of the elderly and the strategies governments should employ towards the employment of this age group in both countries.