The Effect of Health on the Elderly's Labor Supply in Rural China: Simultaneous Equation Models With Binary, Ordered, and Censored Variables

Overview

Journal Front Public Health

Specialty Public Health

Date 2022 Aug 1

PMID 35910924

Authors

Na Tan

Liang Chang

Rui Guo

Baiyi Wu

Affiliations

Soon will be listed here.

Abstract

In this study, we examined the effect of health on the elderly's labor supply in rural China based on the data of the Chinese Health and Nutrition Survey (CHNS) from 1997 to 2006. We used simultaneous equations to address the endogeneity problem of health and estimate the models with censored data of labor supply by the full information maximum likelihood estimation. We found that the failing health does not significantly decrease the elderly's labor supply in rural areas when using both the subjective (self-reported health status) and objective (hypertension diagnosed or not) health indicators. Our finding indicates the phenomenon of "ceaseless toil" for the elderly in rural China, i.e., the elderly almost work their whole life even if they are not physically capable. The results remain robust when using a two-stage limited information maximum likelihood estimation.

Citing Articles

Geographical accessibility of medical resources, health status, and demand of integrated care for older people: a cross-sectional survey from Western China.

Lin T, Guo W, Li Y, Guo X, Bai X, Min R BMC Geriatr. 2024; 24(1):440.

PMID: 38769502 PMC: 11103970. DOI: 10.1186/s12877-024-04987-2.

References

Haveman R, Wolfe B, Kreider B, Stone M . Market work, wages, and men's health. J Health Econ. 1994; 13(2):163-82. DOI: 10.1016/0167-6296(94)90022-1. View

Datta Gupta N, Larsen M . The impact of health on individual retirement plans: self-reported versus diagnostic measures. Health Econ. 2009; 19(7):792-813. DOI: 10.1002/hec.1523. View

Dwyer D, Mitchell O . Health problems as determinants of retirement: are self-rated measures endogenous?. J Health Econ. 1999; 18(2):173-93. DOI: 10.1016/s0167-6296(98)00034-4. View

Latif E . The impact of diabetes on employment in Canada. Health Econ. 2008; 18(5):577-89. DOI: 10.1002/hec.1390. View

Coste J, Bouee S, Ecosse E, Leplege A, Pouchot J . Methodological issues in determining the dimensionality of composite health measures using principal component analysis: case illustration and suggestions for practice. Qual Life Res. 2005; 14(3):641-54. DOI: 10.1007/s11136-004-1260-6. View

DAHL L . Possible role of salt intake in the development of essential hypertension. 1960. Int J Epidemiol. 2005; 34(5):967-72. DOI: 10.1093/ije/dyh317. View

Kalwij A, Vermeulen F . Health and labour force participation of older people in Europe: what do objective health indicators add to the analysis?. Health Econ. 2007; 17(5):619-38. DOI: 10.1002/hec.1285. View

Zhang X, Zhao X, Harris A . Chronic diseases and labour force participation in Australia. J Health Econ. 2008; 28(1):91-108. DOI: 10.1016/j.jhealeco.2008.08.001. View

Ning M, Zhang Q, Yang M . Comparison of self-reported and biomedical data on hypertension and diabetes: findings from the China Health and Retirement Longitudinal Study (CHARLS). BMJ Open. 2016; 6(1):e009836. PMC: 4716227. DOI: 10.1136/bmjopen-2015-009836. View

10.

Black N, Johnston D, Suziedelyte A . Justification bias in self-reported disability: New evidence from panel data. J Health Econ. 2017; 54:124-134. DOI: 10.1016/j.jhealeco.2017.05.001. View

11.

Gorry D, Slavov S . The effect of retirement on health biomarkers. Econ Hum Biol. 2020; 40:100949. DOI: 10.1016/j.ehb.2020.100949. View

12.

Feng Q, Yeung W, Wang Z, Zeng Y . Age of Retirement and Human Capital in an Aging China, 2015-2050. Eur J Popul. 2019; 35(1):29-62. PMC: 6357252. DOI: 10.1007/s10680-018-9467-3. View

13.

Jiang J, Huang W, Wang Z, Zhang G . The Effect of Health on Labour Supply of Rural Elderly People in China-An Empirical Analysis Using CHARLS Data. Int J Environ Res Public Health. 2019; 16(7). PMC: 6479696. DOI: 10.3390/ijerph16071195. View

14.

Feng X, Pang M, Beard J . Health system strengthening and hypertension awareness, treatment and control: data from the China Health and Retirement Longitudinal Study. Bull World Health Organ. 2014; 92(1):29-41. PMC: 3865551. DOI: 10.2471/BLT.13.124495. View

15.

Macmahon S . Alcohol consumption and hypertension. Hypertension. 1987; 9(2):111-21. DOI: 10.1161/01.hyp.9.2.111. View

16.

Cai L, Kalb G . Health status and labour force participation: evidence from Australia. Health Econ. 2005; 15(3):241-61. DOI: 10.1002/hec.1053. View

17.

Chen R, Xu P, Song P, Wang M, He J . China has faster pace than Japan in population aging in next 25 years. Biosci Trends. 2019; 13(4):287-291. DOI: 10.5582/bst.2019.01213. View

18.

Shai O . Is retirement good for men's health? Evidence using a change in the retirement age in Israel. J Health Econ. 2017; 57:15-30. DOI: 10.1016/j.jhealeco.2017.10.008. View

19.

Disney R, Emmerson C, Wakefield M . Ill health and retirement in Britain: a panel data-based analysis. J Health Econ. 2006; 25(4):621-49. DOI: 10.1016/j.jhealeco.2005.05.004. View

20.

van Rijn R, Robroek S, Brouwer S, Burdorf A . Influence of poor health on exit from paid employment: a systematic review. Occup Environ Med. 2013; 71(4):295-301. DOI: 10.1136/oemed-2013-101591. View