The Impact of Labor Force Participation on Elderly Health in China

Abstract

In the context of the deepening of population aging and the trial implementation of a progressive retirement delay policy in China, understanding the relationship between the labor force participation and health status of the elderly will not only enrich relevant research but also help the elderly better achieve their goals of active aging and aging. Using the 2018 China Health and Retirement Longitudinal Study, this paper first established multiple linear regression models to analyze the impact of labor force participation on the health status of elderly people in China and then established simultaneous equation models using households living on minimum living allowances and the community average of labor participation as instrumental variables to deal with the endogeneity caused by two-way causality. The findings confirmed significant positive correlations between labor force participation and physical and mental health, while caring for grandchildren and participating in social activities were found to be negatively moderated the relationship between labor force participation and the physical and mental health of older adults. The impact of labor force participation on the physical health status of older men and the mental health status of older women may be greater. In addition, labor force participation may have a greater impact on the physical health of the rural elderly, and its impact on mental health was not found to be statistically significant between urban and rural areas.