Vocational Behavior of the Japanese in Late Adulthood: Focusing on Those in the Retirement Process

JOURNAL OF VOCATIONAL BEHAVIOR ARTICLE NO.

52, 300 –311 (1998)

VB971632

Vocational Behavior of the Japanese in Late Adulthood: Focusing on Those in the Retirement Process A. Mieko Watanabe-Muraoka Graduate School of Counseling, University of Tsukuba, Tokyo, Japan

Tomotsugu Kawasaki Faculty of Sociology, Kansai University, Osaka, Japan

and Shin’ichi Sato Meijigakuin University, Tokyo, Japan This paper introduces some findings about the vocational behavior of the late adult Japanese who are in a process of transition. The first part of the paper emphasizes the need for research on Japanese vocational behavior in late adulthood from a developmental– contextual frame of reference. In the second part, discussion is focused on circumstances of late adult workers in Japan who have been affected most by the current socioeconomic changes and who have been caught in the middle of changes in employment management systems and policies. A brief summary of the findings from two ongoing research projects which emphasize the need for psychological–interventional assistance in order for retiring persons to maintain their well-being in a period of personal and social transition is presented. © 1998 Academic Press

Like most industrialized nations, Japan has been experiencing drastic changes in its occupational and economic structures, its employment and management systems, its societal and individual work and lifestyle values, and the demographics of its work force. These changes have been brought about by such factors as advanced technological innovation, economic globalization, intensification of international competition, structural recession of industries, rapid aging of the population, and decreasing birth rates (Nihonteki Koyoseidokenkyudai, 1995). These environmental changes have affected numerous aspects of Japanese vocational behavior, such as decision-making processes, vocational adjustment, vocational preferences, and career paths. Within the context of these socioeconomic changes, research on the structural and developmental aspects of vocational behavior is recognized as critically important for individual Japanese 300 0001-8791/98 $25.00 Copyright © 1998 by Academic Press All rights of reproduction in any form reserved.

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citizens to improve their own well-being and for the nation to maintain economic growth. The purpose of this article is to describe current environmental changes affecting Japanese adult workers and to introduce two ongoing studies on vocational behavior during late adulthood. In order to provide a theoretical framework for research on vocational behavior in Japan, we selected a traditional trait–factor approach, Super’s developmental approach, and Holland’s typology from many theories that have been introduced to Japan. Super’s theory and research into career development and work value have been introduced successfully into Japanese academic circles over the past 40 years (e.g., Nakanishi, 1988). Holland’s (1985) theory, together with his Vocational Preference Inventory (VPI) and Self-Directed Search, was introduced in the 1970’s by Japanese researchers including the first author. The first author and her colleagues spent five years examining the applicability of Holland’s hexagon to the Japanese population. By replicating Holland’s research strategies, it was found that the vocational preferences of Japanese adolescents were classified into the same six types (Watanabe et al., 1982; Japan Institute of Labor, 1985), although the correlation coefficients between the six types were found to be much lower in the Japanese group than for the original American counterparts (Watanabe et al., 1982). Since the Japanese version of the VPI was published by the Japan Institute of Labour, Holland’s (1985) theory of ‘‘person– environment interaction’’ as well as his classification system of occupations has been recognized as a prominent theoretical and practical framework. Currently the first author is examining the applicability of Holland’s theory to late adult workers and results appear positive (Watanabe, 1996). The traditional trait–factor approach remains a major framework in industrial psychology. Theories and models of decision making are also becoming popular as a basis for research. For example, Shimoyama (1986) conducted research on vocationally indecisive college seniors and found four types of indecisiveness. One type of indecisiveness resulted from vocational immaturity, one from emotional confusion, one involved avoidance of a decision, and one is referred to as being in the midst of positively exploring one’s own career. Shimomura and Kimura (1994) investigated the relation between decisiveness and information-seeking behavior among college seniors who were ready to contact employers. They found a significant relation between the two variables. Compared with indecisive groups, students who were categorized into the decisive group and the positively exploring group showed significantly higher scores on awareness of importance, knowledge of resources, and actual exploration of information regarding self, employers, and industries. Shimizu (1989) focused on indecision of junior high school students. Including the above and other research (e.g., Japan Institute of Labor, 1988), the majority of psychosocial studies into vocational behavior conducted in Japan have been focused on the school-to-work transition period of adolescent exploration. A similar trend occurred in the United States where much of the early research on vocational development focused on the adolescent period (Herr & Cramer, 1996). In Japanese society, the school-to-work transition in adolescence

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or early adulthood has been recognized as the only and/or the most critical event which decides the quality of the rest of vocational life. This is due to the traditional employment policies of Japan, such as life-long employment and seniority systems. Not surprisingly, therefore, both researchers and practitioners have focused on behavior in the adolescent stage. However, as Schossberger (1986) and other researchers have suggested, for the Japanese population transition is no longer the task of adolescents only, but occurs throughout the life span. It seems fair to say that Japanese management policies created a unique interdependence between employers and employees. Employers expected loyalty and a sense of belonging rather than independent decision-making skills among mature and older workers at the point where employees could achieve career maintenance or the beginning of decline in Super’s framework (Super, 1957). However, current socioeconomic and demographic changes have forced industrial sectors to shift their employment management policies, on one hand, while individual workers are expected to cope with unexpected transition and responsibility as decision makers of their own careers, on the other hand. As Neugarten et al. (1965) mentioned, there are many late adult workers who face a socially created transition. This is especially critical for the late adult workers over the age of 55 in Japan who need to redefine their aspirations and to reform their relations to working life and to the meaning of life. From interviews with 26 managerial white-collar workers (male, between 50 and 55 years of age), the authors found that those who had successfully changed workplaces just before their mandatory retirement age manifested a positive self-image, a quick reformation of their work life, and a positive and realistic future perspective (Watanabe, 1996). While Osipow (1989) indicated that researchers have begun to inquire into issues related to the later phases of a career, it is the experience of Japanese academia that environmental changes have occurred so fast that research on vocational behavior in the late transitional period has not kept pace with societal and personal needs. The authors assume that the developmental– contextual model (Vondracek et al., 1986) is an appropriate framework for research into the characteristics of late adult Japanese workers who have experienced the traditional Japanese employment system with a need for drastic change at the end of their career. BACKGROUND OF VOCATIONAL BEHAVIOR IN LATE ADULTHOOD In order to better understand the vocational behavior of Japanese workers in late adulthood, demographic trends, pensions and retirement systems, and factors determining vocational behavior are briefly reviewed, prior to the presentation of psychological findings. The Aging of the Population It is said that statistically Japan joined the typical aging societies in 1970 when the proportion of the population 65 years old and above reached 7%. This proportion has risen constantly since then and in June 1997, the proportion was

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15.5%, according to the estimation of the Management and Coordination Agency. The 18 Life Tables released from the Ministry of Health and Welfare in 1997 showed that life expectancies at birth in 1996 were 76.38 years for males and 82.85 years for females. Since the 1950s life expectancy has been extended and in recent years Japanese people have experienced the longest life expectancy in the world. On the other hand, we found from Vital Statistics ’96, released from the Ministry of Health and Welfare in 1997, that the Japanese total fertility rate was 1.43%. This rate has seen a gradual decrease and it is estimated that the total population will begin to decrease early in the 21st century. These statistics show that the long lifespan of the Japanese and the low birth rate have contributed to the aging of the population. It is the speed with which the Japanese population has aged that has caused difficulties; it has occurred too abruptly to prepare the various systems for the coming society. One of the most serious issues is the maintenance of the public pension system, which is closely linked to vocational behavior in late adulthood. Pension and Working Behavior Since the 1980s the effect of the public pension has been the major focus of research on the vocational behavior of the Japanese during late adulthood. It is a politically and socially critical to estimate how many elderly people want to continue to work and whether the plan to extend the pensionable age and reduce pensions is put into practice in the near future (Seike, 1989). Concerning the effects of the public pension on the labor supply, Seike (1980), Motokawa and Mori (1981), and Shimono and Tachibanaki (1984) suggested that the pension benefit basically reduces the labor supply. Using longitudinal data, Seike (1986) also showed that the public pension has a stabilizing effect on working behavior and he concluded that working behavior is predictable to a great extent because of the existence of a pension system. These analyses indicate that the pensionable age and the pension benefits under the present public pension plan restrict working behavior in late adulthood. Elderly workers were free to choose to retire while the public pension reduced the desire of elderly workers to continue to work (Seike, 1993). However, when the reform of the public pension plan is implemented it will be difficult to find adequate employment opportunities for elderly workers. Mandatory Retirement System and Working Behavior The mandatory retirement system is another issue that should not be neglected when Japanese workers’ behavior is discussed. Almost every company has a mandatory retirement system in Japan. Some persons assert that the mandatory retirement system is a form of ageism, but the Japanese government carried out a policy of extending the age limit from 55 to 60 instead of abolishing the system itself. Consequently, the retirement age is generally set at 60, while in the 1970s this age was usually set at 55.

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The Ministry of Labour (1996) showed that 93.4% of all companies in this country have mandatory retirement systems and 96.2% of these have the equal retirement systems, which means that all employees have to leave the company at the specified age regardless of their occupations. Currently 88.3% of companies that have equal retirement systems set the retirement age at 60 and above, but this rate depends on the size of the firm (number of persons employed). However, it is quite usual for older Japanese workers to get another job after leaving a company at retirement age. This means that the mandatory age limit for retirement in companies is different from the actual age of retirement from the labor market. Hence, many persons go through two retirements. This is a distinctive feature of Japanese vocational behavior during late adulthood. As a result of this, Japan has a high labor force participation rate among workers 65 and over. According to the Management and Coordination Agency (1997), this rate is 22.1% (34.6% of males, 13.4% of females). Researchers have been interested in studying why some Japanese continue to work after reaching their mandatory retirement age. There is another statistic which illustrates that changes have been occurring in the retirement policy. The Ministry of Labour (1996) found that 70.3% of enterprises that used to have the equal retirement system began to introduce new strategies for their older employees, such as re-employment and employmentextension arrangements, all within the framework of keeping to traditional age-limit retirement. In some organizations employees make their own decisions about retirement. However, there are companies whose personnel management sections have the right to make decisions on behalf of employees. Another new policy has been introduced recently to promote earlier retirement (around the age of 50). Using this arrangement (a kind of ‘‘open window program’’), early retirees can get paid in addition to their retirement allowance and/or they can get a new job by way of placement services provided by their companies. Earlier retirement should, therefore, make it easier to find a job. According to the Ministry of Labour (1997), 7.0% of all companies and 55.7% of larger companies (5000 or more employees) have early retirement programs. Furthermore, larger companies usually have other types of arrangements for the purpose of employment adjustment, such as temporary transfer to a subsidiary company and permanent transfer of employees to a subsidiary, related, or associated company. The number of workers who experience their first retirement before their official mandatory retirement age has increased, especially among larger companies. In brief, vocational behavior in late adulthood has become more varied because of the introduction of new policies such as the extension of a mandatory retirement age, re-employment and employment-extension arrangements, better arrangements for early retirees, and temporary and permanent transfers arrangements. Those policies have begun to allow workers to make decisions about their futures. However, it could be said that workers have to equip themselves with

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decision-making skills because they have options and need to choose the best ways to handle retirement. Factors Determining Vocational Behavior Previous research into retirement decision making has investigated (1) aspects of the social system; (2) aspects of the employing organization and work site; and (3) individual factors (Seike, 1990). Among those factors related to the social system, the public pension plan is recognized as the most influential. Employer and work-site factors that are influential include the wage system, the retirement allowance system, the pattern of working hours, and the working environment (Maruo, 1985). Researchers also stress the importance of harmony with younger workers, human resource development of elderly workers, and job redesign (Kobayashi, 1988). Individual factors such as age (Seike, 1990), health condition, finances, and the way of thinking about life (Information Analysis Division, 1981) also effect vocational behavior during late adulthood. Ujihara (1980) discussed individual factors and suggested three important motives for work behavior in late adulthood, namely (1) to earn a living, (2) to make use of their abilities and to be satisfied with the evaluation of their performance, and (3) to play a part in society in order to meet their need for social participation through maintaining or renewing human relations. Sociological and economic factors have also been studied in relation to vocational behavior during the retirement process in Japan. Ito (1984) studied occupational career; Toda, Kido, and Wakabayashi (1987) examined the effect of individual attributes, occupational career, the mandatory retirement system, and economic factors; and Okamura (1983) examined the combined effect of the pension benefit, age, health condition, occupational career, and having dependents. All factors are important. Okamura (1987) examined panel data of 501 males aged between 60 and 64 in terms of 13 variables related to income aside from their wage, the situation of dependents, nonwork activities, and individual attributes. She concluded the following: (1) the determinants of working and not working are health condition, occupations before the mandatory retirement age, and economic factors such as the amount of a lump-sum retirement allowance, income from the work of their wives, and their pension benefit; (2) those who still have their jobs usually continue to work for the work’s own sake and not to earn a living; and (3) leisure activities or social participation do not promote retirement from the labor market. There are some differences among these findings because of the following reasons. First, vocational behavior in late adulthood depends on the current labor demand and working conditions (Yamada, 1996). Second, the public pension plan representing the social system certainly has an influence on vocational behavior, but this behavior is also affected by many other factors such as leisure activities, social participation, family issues, and health. Third, individual differences in late adulthood such as physical strength and health, job ability and

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performance, and the meaning attached to work are more important than for the younger generation (Kimura, 1985; Adachi, 1990). We consider that psychological or life-span career developmental research that pays attention to individual factors is urgently required to understand vocational behavior in late adulthood. Such issues as the value of individuals, the quality of life, the meaning of work and retirement, and a perspective for postretirement life should be treated as important in research. This is because the retirement process is important as elderly workers try to reconstruct their life and its meaning. LIFE IN THE RETIREMENT PROCESS AND PSYCHOLOGICAL CHANGE It has been noted that there are numerous psychological aspects of life changes resulting from retirement (Okamoto & Yamamoto, 1985). However, although it is understood that there are multiple individual and environmental factors, the exact nature of interactions remains unclear (Shimizu, 1995). Controversies among research approaches, for example between activity theory and disengagement theory, have not yet been settled due to a tendency for researchers to carry out studies from their own perspectives. Two of our research projects demonstrate psychological changes before and after retirement in the unique Japanese context. The first is ‘‘Research of Life and Ikigai of Japanese Workers’’ (Foundation of Senior Life Enrichment, 1991– 1993). Ikigai, a peculiarly Japanese term, refers to the positive state of mind as well as objects which produce a feeling that one’s own life is worth living. It actually embraces a variety of concepts such as happiness, psychological wellbeing, and life satisfaction (Sato & Azuma, 1996). This research project, published in one book and three reports, will be repeated at intervals of five years. The second phase started in 1996 and its first report was published in 1997. The purpose of the project is to investigate expectations and preparations for postretirement lives among preretirement workers and the actual lives and psychological situations of postretirement workers. The second project is the Research Project on the Retirement Process, which was sponsored by the Japan Institute of Labor. The employment environment in Japanese companies where the traditional lifelong employment and seniority systems were changed has left many middle-aged and older employees feeling anxious and hopeless. The purpose of the second research project was to examine the impact of the insecure situations of employees before the mandatory retirement on their lives, and psychological conditions both before and after retirement. Research of Life and Ikigai of Japanese Workers (1991–1993) Data were collected via mail survey and three interviews that focused on (1) a sense of commitment to company and community; (2) activity without job (e.g., community volunteer activities); (3) social networks; (4) ikigai, and (5) retirement. Subjects were 4000 pre- and postretirement employees of both sexes

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TABLE 1 Satisfaction, Importance, and Possession of ikigai among Pre- and Postretirement Employees (%)

Percentage of higher degrees of satisfaction Working Social status Social contribution Interaction in the community Percentage of subjects answering important Job Friends Community Nation Rate of possession of ikigai Possess Do not possess Don’t know/Not applicable

Preretirement

Postretirement

60.8 46.2 18.8 25.5

54.7 37.0 35.1 47.2

64.5 54.5 21.0 14.5

25.5 55.7 42.5 24.9

60.9 25.1 14.0

75.3 17.7 6.9

ranging in age from 35 to 74 years. Of those, 2853 data sets (80% were for male subjects) were analyzed to compare differences between pre- (n 5 1778) and postretirement employees (n 5 1075). Although numerous issues were investigated, in this paper we will focus on differences in pre- and postretirement employees’ attitudes. Table 1 summarizes the respondents’ satisfaction with ‘‘working,’’ ‘‘social status,’’ ‘‘social contribution,’’ and ‘‘social interaction in the community.’’ Although over 50% of both groups were satisfied with working, these data included answers about tasks such as housekeeping from persons not having jobs. Comparing only wage workers, 74.8% (n 5 587) of the mandatorily retired persons (postretirement group) were satisfied with their jobs. The finding that more pre- than postretirement persons were satisfied with their social status can be attributed to the ‘‘loss of the title to name’’ phenomenon. The ‘‘title to name’’ means that, in Japan, status in a company conveys its own social status. Loss of a relation with a company sometimes becomes a major loss of identity among the elderly in Japanese society. Satisfaction with ‘‘social contribution’’ and ‘‘interaction in the community’’ increased following retirement. Employees in Japan might feel that working for their previous company did not make a social contribution, and most of them did not have chances to interact with people in the community. Table 1 shows that ‘‘job’’ was considered more important than friends, community, and nation by preretirement persons. About half of the pre- and postretirement groups answered that their friends were important. The community was rated as important by twice as many postretirement persons than preretirement persons and more postretirement persons than preretirement persons considered the nation to be important.

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The percentage of postretirement persons possessing ikigai was 14.4% more than the percentage of preretirement ones, and about a quarter of the latter did not possess ikigai. Although it was feared that loss of ikigai would be one of the problems of the retired elderly and among older persons, it was the younger preretirement persons who felt a loss of ikigai more than the older postretirement ones. A thorough plan before retirement may allow a successful transition to postretirement life given that everyday life becomes more controllable after retirement. Preretirement respondents were asked what qualitative plan for postretirement life they had been forming. A few (13.2%) reported that they had formed a concrete plan and about the same proportion reported that they had a less concrete plan (19.9%). However, most (66.6%) reported that they had formed no plan. The group with no plan showed higher anxiety about postretirement life than those with a plan. One reason that people do not make a plan for their postretirement life may be the lack of clarity in the career process, especially among those who are white-collar employees. Many believe that their career until retirement is not controlled by themselves. However, most white-collar employees had transferred to a smaller company within the same group of the organization by the time they were in their 50s. There were also the cases of announced discharge. Considering the uncertain environment of employment, it is difficult for employees to make any concrete plans for their lives either before or after retirement. Research Project on Retirement Process (Since 1995) The second research project examined psychological aspects of the retirement process from the framework of the interaction between the individual employee and the organization. The purpose of this research was to (1) categorize types of retirement processes, (2) examine the relation between the career process for mandatory retirement and life after retirement, and (3) obtain knowledge about support for postretirement life. In this study, the period during which the retirement process occurs is defined as the period between 50 to 70 years of age. Most white-collar employees would expect to start mandatory retirement from the company generally at about 50 years of age, and at about 70 years of age, they would expect to retire from work completely. The participants in this research were 1229 late adult males in the period of pre- and postretirement who worked in larger-sized enterprises. As this research is still proceeding, the first part of the analysis and findings on 108 retired males aged between 50 to 59 will be summarized here. The initial aim to examine the relation between the career process for mandatory retirement and adjustment in postretirement life (Matsumoto, Watanabe, & Kawasaki, 1997). In general, persons showing higher satisfaction with postretirement life tend to have been committed positively to mandatory retirement during the preretirement period. The first study, Research of Life and Ikigai of Japanese Workers, also suggested that concrete preparation for retirement would reduce anxiety about postretirement life.

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This study also examined the effects of factors that determine a commitment to planning for mandatory retirement. Independent variables were ‘‘size of company’’ and ‘‘job status,’’ and the dependent variable was ‘‘planning for the mandatory retirement.’’ The independent variables did not have any significant direct relation with the dependent variable. Next, 10 intermediate variables involving factors such as personality, psychological distance between individual and organization, self-esteem, conviction of job, conviction of life, predictive self-esteem, attitude toward disengagement, anxiety as to future life, and occupational category desired after mandatory retirement were entered in addition to the above independent variables to calculate and examine a causal model. The result showed that there were two causal streams of paths beginning with personality variables in this model. One path started from ‘‘achievement directed,’’ and the other from ‘‘affiliation-directed.’’ It might be said that the former path was related to a sense of attachment to the job and the latter path indicated the degree of high attachment to the organization. Satisfaction with both occupational and private lives influenced ‘‘planning for mandatory retirement.’’ It also affected ‘‘self-esteem’’ (which was one of the personality factors). Self-esteem appeared to predict the degree of psychological adjustment to the social environment. It appeared that a positive evaluation of one’s own job and life until mandatory retirement was an important element in subsequent psychological adaptation. Self-esteem also influenced the behavior preparing for retirement. The higher self-esteem among participants, the more positive and more concrete planning behavior they demonstrated toward post-retirement life. In order to reduce employee anxiety about the retirement process and increase a sense of adaptation during preretirement, awareness (knowing one’s attitude to a job or a organization) based on personality variables (achievement-directed or affiliation-directed) appears to be an advantage. Intervention programs such as counseling, guidance, and education for retirement that are suitable for each type should be prepared. CONCLUSION The article presents findings about the late adult vocational behavior of the Japanese based on ongoing research which the authors have conducted. Participants in both studies are representatives of the Japanese workforce. They formed their careers in the milieu of the Japanese employment management system involving life-long employment, seniority, and mandatory retirement through an era of high economic growth in Japan. Now they have been forced to face unexpected transitional crises in their own careers which have been brought about by changes in the Japanese employment management system. Findings suggest that those late adult workers who have higher self-esteem and positive attitudes toward their own past career lives were well prepared for their transitional periods. The size of company and job status, which are indices successful careers as

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