The elderly’s health capacity to work in China

Abstract

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.