The Impact of Health on Labor Supply near Retirement

Abstract

Estimates of how health affects employment vary considerably. We assess how different methods and health measures impact estimates of the impact of health on employment using a unified framework for the US and England. We find that subjective and objective health measures, and subjective measures instrumented by objective measures produce similar estimates when using sufficiently rich objective measures. Moreover, a single health index can capture the relevant health variation for employment. Health deterioration explains up to 15% of the decline in employment between ages 50 and 70. Effects are larger for the US than England, and for the low educated.

Impact of mobile payment on physical health: Evidence from the 2017 China household finance survey

“…Payment via computer (Including online banking, Alipay, etc. ), (4). Payment via mobile phone, tablet, and other mobile terminals (Including Alipay APP, WeChat Pay, mobile banking, Apple pay, etc.).…”

“…Citizens' health is an important issue in both developed and developing countries. Individuals' health status not only affects their happiness, labor supply, wages, and productivity, but also family income, asset allocation, and economic well-being (1)(2)(3)(4)(5). Therefore, research on the determinants of health has long been a focus of attention in industry and academia.…”

Health risk and the welfare effects of Social Security

“…For example, evaluate Social Security reform proposals accounting for benefit claiming and labor force participation using a general-equilibrium model with health risk, and Braun, Kopecky and Koreshkova (2017) evaluate the welfare implications of means tested social insurance, such as Medicaid and Supplemental Security Income, conditional on current U.S. Social Security and health risk in a similar general-equilibrium framework. Disability insurance and its connection to retirement has been studied in partial equilibrium frameworks by Low and Pistaferri (2015) and Blundell et al (2021). 2 More recently, Jones and Li (2018; use a partial-equilibrium framework and examine Social Security reform using models with health-dependent income, health expenditures, and mortality risk, and conclude that the progressivity of U.S. Social Security should be increased to a lump-sum benefit and the claiming adjustments should be reduced.…”

“…One such tool is early Medicare eligibility (due to an event such as disability) that causes individuals to permanently exit the labor market before the traditional age of 65. The literature on early retirement has demonstrated a strong link of health shocks that lead to disability and subsequent early labor market exit (e.g., Low and Pistaferri, 2015;Kitao, 2014;Blundell et al, 2021). Disability Insurance (DI) therefore plays a key role for the early retirement decision of many individuals, especially in the 55 plus age range.…”

Falling employment and worsening health in the UK: connected or distinct trends?

“…Worsening health in people in their 50s and 60s is known to be one of the key reasons for falling employment rates as people age 11. Unhealthier people might leave work earlier, and are unlikely to return to work, pushing inactivity rates up further (though other factors might act to limit such a rise).…”