The elderly’s health capacity to work in China

ABSTRACT

China’s rapidly aging population has diminished its labor force. This study examines the extent to which the elderly’s labor force participation could be enhanced given their health status. Using national aggregated data from the population census for 1990–2015 and survey data from the Chinese Health and Retirement Longitudinal Study for 2011–2015, we simulated the potential and additional work capacity of China’s elderly using methods employed in previous studies. We obtained four main findings. First, a substantial amount of unused work capacity exists in the 60–69 years age group in urban China, accounting for approximately 30% of the potential work capacity. Second, the additional work capacity is greater for urban residents and men than for rural residents and women. Third, the additional work capacity increases for urban men but decreases for rural men and women. Fourth, the change in sensitivity of work to health reduces potential work capacity.

KEYWORDS:

• Health
• work capacity
• additional work capacity
• potential work capacity
• elderly

Disclosure statement

No potential conflict of interest was reported by the author(s).

Highlights

• Potential and additional work capacity of the older adults in China is simulated

• Estimations are based on two alternative models

• Potential work capacity is decomposed

• Additional work capacity of older adults is estimated to be around 30%.

• Additional work capacity is greater for urban residents and men

Notes

1. In China, according to the UEPI or CSP, the mandatory retirement age of public pension insurance participants is similar to the eligibility age for claiming public pension benefits.

2. Based on data from CHARLS in 2015, the average annual public pension benefit was 27,543 CNY for urban residents compared to 2,705 CNY for rural residents.

Additional information

Funding

This work was supported by the Major Program of National Fund of Philosophy and Social Science of China (CN) [18ZDA080]; JSPS (Japan Society for the Promotion Science) KAKENHI: Grant-in-Aid for Scientific Research (B) from the Japanese Ministry of Education, Culture, Sports, Sciences and Technology (MEXT) [20H01512]; the Fundamental Research Funds for the Central Universities (CN); Basic Research Program of Nature Science Foundation of Jiangsu Province (CN) [BK20190788].