Extending working lives in Japan: Evidence and lessons from an outlier

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<title>Extending working lives in Japan: Evidence and lessons from an outlier</title>
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<namePart>d'Albis, Hippolyte</namePart>
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<namePart>Ben Salem, Mélika</namePart>
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<namePart>Boubtane, Ekrame</namePart>
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<abstract displayLabel="Summary">Population ageing poses major fiscal and macroeconomic challenges for OECD countries. Japan, the most rapidly ageing economy, offers a natural laboratory to study the aggregate effects of extending working lives. Using quarterly data from 1975 to 2022 and structural VAR models, the study estimates the dynamic impact of shocks to older workers' labour force participation. Results show that higher participation does not significantly affect GDP per capita but improves fiscal balance, while reducing average labour productivity. Complementarities across age and gender are observed: increases in older workers' participation are associated with higher participation among younger cohorts and older women. The findings highlight that extending working lives alleviates fiscal pressures and supports labour markets but does not offset demographic challenges without broader structural reforms.</abstract>
<note type="statement of responsibility">Hippolyte d'Albis; Mélika Ben Salem; Ekrame Boubtane</note>
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<topic>Gerencia de riesgos</topic>
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<topic>Perspectivas económicas</topic>
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<topic>Envejecimiento de la población</topic>
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<topic>Política económica</topic>
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<geographic>Japón</geographic>
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<url displayLabel="electronic resource" usage="primary display">https://doi.org/10.1016/j.jeoa.2026.100643</url>
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<title>The Journal of the economics of ageing</title>
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<publisher>Oxford : Elsevier ScienceDirect, 2021-</publisher>
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<identifier type="local">MAP20210010194</identifier>
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<text>13/04/2026 Volumen 34 - 2026 </text>
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