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Labor Force Participation among Indian Elderly: Does Health Matter?

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  • Manoj K. Pandey

Abstract

The paper analyzes the effect of health status on labour force participation for aged Indians. The potential endogeneity in health and labour force participation has been taken care of by using full information maximum likelihood (FIML) and estimation results are compared with alternative two-stage methods. Results show that health has a significant and positive effect on labour force participation of the aged. In order to keep enough supply of elderly in the labour market, sufficient health care is necessary and hence more investment in this sector is imperative.

Suggested Citation

  • Manoj K. Pandey, 2009. "Labor Force Participation among Indian Elderly: Does Health Matter?," ASARC Working Papers 2009-11, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2009-11
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    File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2009/WP2009_11.pdf
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    3. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo, 2015. "Estado de salud y participación laboral: Evidencia para Colombia," Borradores de Economia 851, Banco de la Republica de Colombia.
    4. Manoj K. Pandey, 2013. "Elderly's Health Shocks and Household's Ex-ante Poverty in India," ASARC Working Papers 2013-01, The Australian National University, Australia South Asia Research Centre.

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    More about this item

    Keywords

    self-reported health status; labour force participation; elderly; endogeneity; exogeneity; simultaneous equation model;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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