The Effect Of Health Shocks On The Labor Supply Of Mid-Aged And Older Working Population

At present,China is gradually entering the period of population indebtedness from demographic dividend,and the young laborer in the next three decades will be reduced by 30%,showing the unfavorable situation that the proportion of population in middle-aged and elderly working population is higher while the labor force participation rate is lower.National "Thirteenth Five-Year" plan proposed "Comprehensive response to declining population of working-age population,the implementation of a progressive delay in retirement policy,Increasing the labor force participation rate of older workers and enhancing the employability of older workers".Delayed retirement plan also announced soon.Delays in retirement are not synchronized across all groups,but gradually began to implement from the middle-aged and older working population who is closed to the retirement age.It is also an important direction to tap the work potential of laborers,especially the middle-aged and elderly working people in the existing labor market.Therefore,it is urgent to investigate whether this group has enough health conditions to support it.The issue of "aging health" is a major topic facing the social development process.It is the core issue to be solved in this paper that improve the health status of middle-aged and elderly working population so as to fully tap the labor resources of this group.This paper summarizes the CHARLS project data for 2013 and 2015(released in May 2017),taking health changes(deterioration)as a natural experiment,and the samples were divided into experimental group and control group.Using Double Difference Method(DID)to analyze the effect of health shocks on the labor participation and labor supply time of the middle-aged and elderly working population,at the same time,acute illness shocks are used as instrumental variables of self-rated health to solve endogenous problems.In addition,due to different genders may react differently in the labor market after being hit by the health shocks.In this paper,the sample discussing will be divided by gender and included in the individual heterogeneity by regression analysis more accurately assess the impact of health shocks on labor supply.Research indicates:First,the deteriorating health status of middle-aged and elderly working groups have significant negative impact on labor participation.Both men and women have different degrees of decline,indicating that there is early exiting phenomenon in the labor market due to illness.Second,after the deterioration of health men obviously reduce the labor supply time.However,the annual labor supply time remains at a high level,and generally higher than the female.Although the female labor force participation rate is reduced,the labor supply time for labor participation does not decrease or even increase.It can be explained that there is a certain degree of "endless work" among the middle-aged and older working women groups.The above research helps to understand the present situation and health problems of the working population of middle-aged and older people in the labor market in China,to solve the difficulties in policy of balancing the welfare of middle-aged and elderly and the burden of social pension,to make the aging population play a positive role.Provide reference for public health,pension and retirement policies,promote healthy aging and active aging of our country,so that extend the second demographic dividend.