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Health and Labor Force Participation of the Elderly in Taiwan

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Author Info
Cem Mete
T. Paul Schultz () (Economic Growth Center, Yale University)

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Abstract

Estimates are reported of the consequences of health on participation in the labor force of elderly men and women in Taiwan from 1989 to 1996. Three survey indicators of individual health are examined, and two are estimated by instrumental variables (IV), using as instruments parent longevity, birthplace, and childhood conditions. IV estimates of health's effect on participation are in most cases significant and always positive, and about twice the magnitude of the ordinary least squares estimates, and the hypothesis that health is exogenous and measured without error is rejected. Implementation in 1995 of a National Health Insurance (NHI) shifted to the state the growing cost of elderly health care, and reduced the incentive for elderly to work to receive employer-provided health insurance. But this change in health care financing does not appear to have contributed to a reduction in elderly participation rates in 1996.

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Publisher Info
Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 846.

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Length: 49 pages
Date of creation: Jun 2002
Date of revision:
Handle: RePEc:egc:wpaper:846

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Related research
Keywords: Labor Force Participation; Elderly; Health Status; National Health Insurance; Taiwan;

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
I10 - Health, Education, and Welfare - - Health - - - General
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
    Other versions:
  2. Bartel, Ann & Taubman, Paul, 1979. "Health and Labor Market Success: The Role of Various Diseases," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 1-8, February. [Downloadable!] (restricted)
  3. O. Attanasio & H. W. Hoynes, . "Differential mortality and wealth accumulation," Institute for Research on Poverty Discussion Papers 1079-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  4. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June. [Downloadable!] (restricted)
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  5. Chou, Y. J. & Staiger, Douglas, 2001. "Health insurance and female labor supply in Taiwan," Journal of Health Economics, Elsevier, vol. 20(2), pages 187-211, March. [Downloadable!] (restricted)
  6. Schultz, T. Paul & Tansel, Aysit, 1997. "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics, Elsevier, vol. 53(2), pages 251-286, August. [Downloadable!] (restricted)
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  7. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April. [Downloadable!] (restricted)
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  8. Michael Hurd & Daniel McFadden & Angela Merrill, 1999. "Predictors of Mortality Among the Elderly," NBER Working Papers 7440, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Orazio P. Attanasio & Carl Emmerson, 2001. "Differential Mortality in the UK," NBER Working Papers 8241, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Christopher J. Ruhm, 2001. "Economic Expansions Are Unhealthy: Evidence from Microdata," NBER Working Papers 8447, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Smith, J-P & Kington, R, 1997. "Demographic and Economic Correlates of Health in Old Age," Papers 97-06, RAND - Reprint Series.
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  13. Gertler, Paul J., 1998. "On the road to social health insurance: the Asian experience," World Development, Elsevier, vol. 26(4), pages 717-732, April. [Downloadable!] (restricted)
  14. Michael Baker & Mark Stabile & Catherine Deri, 2001. "What do Self-Reported, Objective, Measures of Health Measure?," NBER Working Papers 8419, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June. [Downloadable!] (restricted)
  16. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November. [Downloadable!] (restricted)
  17. Krueger, Alan B & Pischke, Jorn-Steffen, 1992. "The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 412-37, October. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dwayne Benjamin & Loren Brandt & Jia-Zhueng Fan, 2003. "Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China," Working Papers benjamin-03-01, University of Toronto, Department of Economics. [Downloadable!]
    Other versions:
  2. Kamhon Kan & Yen-Ling Lin, 2009. "The labor market effects of national health insurance: evidence from Taiwan," Journal of Population Economics, Springer, vol. 22(2), pages 311-350, April. [Downloadable!] (restricted)
  3. Klasen, Stephan & Günther, Isabel, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  4. Deborah Cobb-Clark & Lisa A Cameron, 2005. "Do Coresidency with and Financial Transfers from Children Reduce the Need for Elderly Parents to Work in Developing Countries?," CEPR Discussion Papers 508, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  5. Lisa Cameron & Deborah Cobb-Clark, 2008. "Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?," Journal of Population Economics, Springer, vol. 21(4), pages 1007-1033, October. [Downloadable!] (restricted)
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