Intention to Re-enter the Labour Force among Older Male Singaporeans: Does Health Status Matter?

Abstract

The increasing old-age dependency ratio in Singapore poses a major challenge to the social security benefit for its ageing population. Providing older Singaporeans with more employment opportunities may then benefit individuals, families, and society—if older adults are willing and able to work. This paper investigates the intention of Singaporean male retirees to re-enter the workforce and how their health status may influence this decision. Using data from the Social Isolation, Health and Lifestyles Survey (2009) we model the intention to re-enter as the dependent variable and used both subjective and objective health measures as the main independent variables. A probit model accounting for sample selection was estimated. We found that poorer health status had a positive association with the probability of elderly men reporting having retired, and a negative association with the intention to re-enter the labour force. Health status may matter substantially in older adults’ labour market transitions, especially for occupations requiring physical labour. Perceived income adequacy in old age was also a contributing factor in the retiree intention to re-enter the labour force. These results suggested that poor health can be a substantial deterrent to older workers’ labour force participation through earlier retirement and lower likelihood of re-entering the labour force; investing in the health of older and middle-aged workers may have positive long-term economic effects.