• Korean Journal of Social Welfare Studies
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• v.42 no.4
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• pp.295-327
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• 2011

Although there are many studies on the retirement recently, very few studies have empirically addressed on mandatory retirement. In Korea, several scholars suggest that the seniority systems may be the main reason that employers have been reluctant to hire older workers. Therefore, the seniority system that Lazear(1979) proposed has significant implication on explaining mandatory retirement in Korea. Thus, this study aims to examine the seniority system that Lazear proposed can explain the retired employees' mandatory retirement. The empirical study is based on Korean Longitudinal Study of Ageing. wave I-II. The main result from this analysis is that interaction between wage and job tenure on mandatory retirement is statistically significant. For employees with high wage growth rates, the probability of mandatory retirement rate is higher as their job tenure is longer. On the other hand those employees with wage growth rates, that is lower although their job tenure is longer. This study supports the assertion of Lazear(1979).

• Journal of Labour Economics
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• v.37 no.3
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• pp.101-122
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• 2014

This paper empirically estimates the decision of aged workers related to the retirement decision. Using the supplemental survey for aged people of the Korean panel data set, the paper analyses the correlation between the retirement decision of middle-aged people (aged 50 years or older) and personal characteristics and job characteristics of main jobs that aged people had worked, particularly focusing on the mandatory job retirement regulation and its regulation of retirement ages. The empirical results show that the regulated retirement age is more important than the existence of mandatory retirement system in related to the workers' retirement decision.

• Journal of Labour Economics
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• v.38 no.1
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• pp.31-65
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• 2015

This paper examines why older wage workers leave their jobs and what determine the hazard of retirement. Major results are as follows. First, aged workers leaving their jobs because of formal mandatory retirement are relatively few in number and largely males employed in large establishments. Second, a higher hourly wage is associated with a greater retirement hazard, especially among male employees of large firms. Third, informal mandatory retirement puts a strong pressure towards retirement among older female workers. Fourth, poor health is the primary reason for retirement among older workers, especially for females and small-firm employees. Finally, reasonable hours and greater flexibility of work tend to lower retirement hazard. We discuss some implications of the results for old-age labor market policies.

• Journal of Labour Economics
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• v.44 no.2
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• pp.1-31
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• 2021

This paper estimates the employment effects among 55~59 years old men of delayed mandatory retirement act between 2016 and 2019. Although the positive employment effects appear to have reclined during the period, they have remained non-trivial and may have encroached youth employment. The results suggest that wages should be flexibly adjusted in the market so that labor demand can sufficiently expand to accommodate the increased labor supply among the old without hurting the young.

• Journal of Labour Economics
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• v.33 no.3
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• pp.1-23
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• 2010

Extension of mandatory retirement age (MRA) differs from other labor supply increases in that it induces a change in the incentive to save for retirement. A simple general equilibrium model indicates that extension of MRA can lead to a decrease in life-time income and social welfare as it excessively discourages domestic savings and thus capital accumulation. However, in an open economy where capital inflow allows capital input in production to remain constant despite lower domestic capital stock, extension of MRA likely increases worker welfare. In such case, extension of MRA can contribute to expansion of hiring demands through lowering wages or mitigating upward pressures on wages.

• East Asian Journal of Business Economics (EAJBE)
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• v.1 no.3
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• pp.71-84
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• 2013

Purpose: The South African government is determined in alleviating poverty while encouraging job creation and protecting the disposable incomes of poor households. This article looks at the challenges that are facing the South African Social Security system and argues that the provision of income security is amongst the most practical expressions of a nation's cohesion and values. Research Design, Data and Methodology: There are seven proposals in the Social Security and Retirement Reform and these proposals are based on the following two principal objectives of the government, that is, to ensure a basic standard of living and to prevent destitution in old age or in circumstances of unemployment or incapacity partly or wholly through redistributive measures, and to encourage savings to provide for the replacement of income on retirement, disablement or death through long-term insurance arrangements. Results: This article evaluates these seven proposals, state old age pension, wage subsidy, mandatory participation in a national social security system for all, mandatory participation in private occupational or individual retirement funds, Voluntary additional contributions to occupational or individual retirement funds, reform of the governance and regulation of the retirement funding industry and reform of the tax system. Conclusion: This article concludes that the population size of South Africa has increased significantly to 51, 8 million in 2011 and therefore the time is right for bold new steps in improving income security of the poor and strengthening the fabric of social solidarity that binds all South Africans together.

• The Journal of the Korea Contents Association
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• v.15 no.11
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• pp.93-103
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• 2015

In this study, it has an intention of arranging an implication based on an effective introduction of a wage peak system in Japan to settle a mandatory retirement at sixty according to a legalization of retirement age at sixty smoothly. Institutionally, retirement age guaranteed type that reduces wage from certain period before retirement is of great importance. In Japan, mainly features the extension of retirement age that focus on keeping aged employment after retirement. In the introduction of the wage peak system, Korea attaches importance to the wage cost savings, but Japan puts emphasis on using aging workforce. Korea wants to promote the aged employment for retirement age at 60, whereas Japan actively push ahead with retirement age 65 and after that time. South Korea needs to reinforce the pensionable age and the connection though the extension of retirement age via the manpower utilization, employment promotion and the stability. It is necessary to prepare a institutional plan to try not to make a gap of the pensions by guaranteeing or extending the retirement age connect to the age of pensioners though the wage peak system. To activate the wage peak system, it is necessary to acknowledge a legal improvement that concedes rational changes such as the rule of employment. An active interpretation is needed currently though, it is more necessary to review the stipulation and the rational changes of the rule of employment that is established by a precedent like the Japanese legislation case. When a disadvantageous change of works rules is made, it is able to consider establishing the provision in the Act on age Discrimination Prohibition in Employment and Aged Employment Promotion, therefore it won't be able to apply the regulation in the rational criterion that satisfies the standards, rather than amending a Article 94 of the Labor Standards Act that makes accepting the approval of the majority of workers.

• Journal of the Ergonomics Society of Korea
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• v.5 no.2
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• pp.17-25
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• 1986

In recent years, the average life span of people in advanced countries has increased. Conwequently, the number of middle-aged and old workers who have the will to work has increased. On the other hand, the declining birth rate has decreased the number of young workers. However, because many enterprises in advanced countries have extended their mandatory retirement age from 55 to 60 years, labor accidents involving aged workers are on the increase. As a result, the need for a method to evaluate the work skills of middle-age and old workers has become urgent. To explore one such method, this study investigated the relationship between aging and manual dexterity. Dexterity was found to deteriorate with age, but with large variability from individual to individual. The parameters of dexterity used in this experiment were found to be reliable.

• International Area Studies Review
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• v.21 no.1
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• pp.221-243
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• 2017

In this study, I examine overall conditions and problems of personal asset management processes by the old age people in Korea from the global perspectives. Major recommended policy implications for those are as follows.. First, the IRR (income replacement ratio) of public pensions in Korea is found to rank nearly the lowest among the OECD member countries. The relatively low fund performance compared to that of developed countries as well as this low IRR can be pointed out as major problems of public pension in Korea. It is recommended to reinforce specialty in fund management as a top priority to solve out these problems related with public pensions in Korea. Second, it is needed to set retirement pensions to be mandatory for almost all the firms in Korea to substitute for the above lower IRR of public pensions and to recover from the highest elderly poverty ratio among the OECD countries. Third, it is required to discuss about the expansion of tax refund policy application in the individual pension sector and many financial investment products under the correction of current budget control to motivate voluntary subscription for individual pension planning and to stabilize elderly lives of ordinary people in Korea. Fourth, it is required to induce market mechanism in controling price and longevity risk of reverse mortgages for the long-run sustainability.

• STI Policy Review
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• v.6 no.2
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• pp.1-23
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• 2015

This study aims to contribute to the debate over the age-productivity relationships in scientific and technological research. For this purpose, we conducted an empirical experiment employing a time-series cross-section dataset derived from the KRI of the NRF containing data on individual researchers of fifty major universities in Korea covering the period of 2008-2013. This study has found that: (1) there exists an inverse U-shaped age-productivity relationship at the level of individual researchers; (2) the impact of the average age of a research group on the productivity of individual researchers varies across fields; (3) male and female researchers move along different age-productivity curves; and (4) the inverse U-shaped age-productivity relationship also holds at the level of organizations. The results suggest that the aging of researchers in Korea will soon reach the stage where serious losses in research productivity become a reality. Yet, it is not so clear whether the observed decline in the performance of older researchers is due to declining cognitive capability, which is an unavoidable result of aging, or to declining motivation, which results from an institutional system that discourages older researchers' research activities (such as reduced access to research opportunities or mandatory retirement). What is clear is that it is inevitable for the Korean science system to change the current seniority- and age-based organizational system into one of higher adaptability.