IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1511-d1033991.html
   My bibliography  Save this article

Effects of Health Status on the Labor Supply of Older Adults with Different Socioeconomic Status

Author

Listed:
  • Yan-Ting Liu

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Yao-Dong Zhou

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Jiao-Li Cai

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

Abstract

Based on the panel data of the China Health and Retirement Longitudinal Study (CHARLS) collected from 2011 to 2018, this paper establishes a model using the instrumental variables method to investigate the effects of poor health on labor participation, labor hours, agricultural labor participation, agricultural labor hours, off-farm labor participation, and off-farm labor hours of older adults with different economic statuses. This paper conducts an empirical analysis to examine how subjective, self-rated poor health and objective poor health measured using the number of chronic diseases can affect the labor supply of older adults. The study of its influence on labor supply from the perspective of health can help to maintain the labor supply of the aged from the perspective of improving the health of the aged, provide a certain reference for the labor shortage caused by China’s aging society, and enrich the content of health economics. According to the research findings, subjective, self-rated poor health significantly reduces the labor participation of older adults. Although self-rated poor health does not affect the off-farm labor participation of older adults, it significantly reduces the likelihood of older adults engaging in agricultural labor. In addition, self-rated poor health also reduces the overall labor hours and off-farm labor hours of older adults, although no effects were observed on their agricultural labor hours. On the other hand, chronic diseases also reduce the overall likelihood of labor participation for older adults, resulting in significantly lower off-farm labor participation, although no effects were observed on their agricultural labor participation. The number of chronic diseases found in older adults does not affect their off-farm labor hours, but it does increase the hours they invest in agricultural labor.

Suggested Citation

  • Yan-Ting Liu & Yao-Dong Zhou & Jiao-Li Cai, 2023. "Effects of Health Status on the Labor Supply of Older Adults with Different Socioeconomic Status," Sustainability, MDPI, vol. 15(2), pages 1-26, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1511-:d:1033991
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1511/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1511/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. García-Gómez, Pilar & Jones, Andrew M. & Rice, Nigel, 2010. "Health effects on labour market exits and entries," Labour Economics, Elsevier, vol. 17(1), pages 62-76, January.
    2. Maarten Lindeboom & Marcel Kerkhofs, 2009. "Health and work of the elderly: subjective health measures, reporting errors and endogeneity in the relationship between health and work," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 1024-1046.
    3. Disney, Richard & Emmerson, Carl & Wakefield, Matthew, 2006. "Ill health and retirement in Britain: A panel data-based analysis," Journal of Health Economics, Elsevier, vol. 25(4), pages 621-649, July.
    4. Umut Oguzoglu, 2010. "Dynamics of work limitation and work in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 656-669, June.
    5. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    6. Lixin Cai & Kostas Mavromaras & Umut Oguzoglu, 2014. "The Effects Of Health Status And Health Shocks On Hours Worked," Health Economics, John Wiley & Sons, Ltd., vol. 23(5), pages 516-528, May.
    7. Lixin Cai & Guyonne Kalb, 2006. "Health status and labour force participation: evidence from Australia," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 241-261, March.
    8. Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Western Economic Association International, vol. 15(1), pages 1-25, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xuhang Shen & Ziqi Wang & Shi Li, 2023. "Access to Piped Water and Off-Farm Work Participation: Evidence from Rural China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    2. Alina Betlej, 2023. "Social Networks, New Technologies, and Wellbeing—An Interview Study on Factors Influencing Older Adults’ Successful Ageing," IJERPH, MDPI, vol. 20(7), pages 1-17, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harris, M.N. & Zhao, X. & Zucchelli, E., 2016. "The dynamics of health and labour market transitions at older ages: evidence from a multi-state model," Health, Econometrics and Data Group (HEDG) Working Papers 16/30, HEDG, c/o Department of Economics, University of York.
    2. Lixin Cai, 2021. "The effects of health on the extensive and intensive margins of labour supply," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(1), pages 87-117, January.
    3. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    4. Jones, M.A. & Rice, N. & Zantomio, F., 2016. "Acute health shocks and labour market outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 16/04, HEDG, c/o Department of Economics, University of York.
    5. Vincenzo Carrieri & Andrew M. Jones & Francesco Principe, 2020. "Productivity Shocks and Labour Market Outcomes for Top Earners: Evidence from Italian Serie A," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 549-576, June.
    6. Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2020. "Acute health shocks and labour market outcomes: Evidence from the post crash era," Economics & Human Biology, Elsevier, vol. 36(C).
    7. Kostas Mavromaras & Joanne Flavel, 2017. "An Analysis of the Impact of Health on Occupation," The Economic Record, The Economic Society of Australia, vol. 93, pages 86-104, June.
    8. Carrieri, V.; & Jones, A.M.; & Principe, F.;, 2018. "Health shocks and labour market outcomes: evidence from professional football," Health, Econometrics and Data Group (HEDG) Working Papers 18/01, HEDG, c/o Department of Economics, University of York.
    9. Emmanuel Duguet & Christine Le Clainche, 2020. "The Socioeconomic and Gender Impacts of Health Events on Employment Transitions in France: A Panel Data Study," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 449-483.
    10. Ekaterina Aleksandrova & Venera Bagranova & Christopher J Gerry, 2021. "The effect of health shocks on labour market outcomes in Russia [Ageing and unused capacity in Europe: is there an early retirement trap?]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 45(6), pages 1319-1336.
    11. Gimenez-Nadal, J. Ignacio & Molina, Jose Alberto, 2015. "Health status and the allocation of time: Cross-country evidence from Europe," Economic Modelling, Elsevier, vol. 46(C), pages 188-203.
    12. Ebaidalla Mahjoub Ebaidalla & Mohammed Elhaj Mustafa Ali, 2018. "Chronic Illness and Labor Market Participation in Arab Countries: Evidence from Egypt and Tunisia," Working Papers 1229, Economic Research Forum, revised 10 Oct 2018.
    13. Asad Islam & Jaai Parasnis, 2022. "Heterogeneous effects of health shocks in developed countries: Evidence from Australia," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 471-495, October.
    14. Dawid Gondek & Ke Ning & George B Ploubidis & Bilal Nasim & Alissa Goodman, 2018. "The impact of health on economic and social outcomes in the United Kingdom: A scoping literature review," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-21, December.
    15. Eric Delattre & Richard K. Moussa & Mareva Sabatier, 2019. "Health condition and job status interactions: econometric evidence of causality from a French longitudinal survey," Health Economics Review, Springer, vol. 9(1), pages 1-18, December.
    16. Verikios, George & Dixon, Peter B. & Rimmer, Maureen T. & Harris, Anthony H., 2015. "Improving health in an advanced economy: An economywide analysis for Australia," Economic Modelling, Elsevier, vol. 46(C), pages 250-261.
    17. Manoj K Pandey, 2009. "Labor Force Participation among Indian Elderly: Does Health Matter?," Working Papers id:1987, eSocialSciences.
    18. Schurer, Stefanie, 2017. "Bouncing back from health shocks: Locus of control and labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 1-20.
    19. Belloni, Michele & Simonetti, Irene & Zantomio, Francesca, 2019. "Long-run effects of health shocks in a highly regulated labour market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201922, University of Turin.
    20. Zucchelli, E. & Harris, M. & Zhao, X., 2012. "Ill-health and transitions to part-time work and self-employment among older workers," Health, Econometrics and Data Group (HEDG) Working Papers 12/04, HEDG, c/o Department of Economics, University of York.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1511-:d:1033991. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.