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Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China

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  • Dwayne Benjamin
  • Loren Brandt
  • Jia-Zhueng Fan

Abstract

Deborah Davis-Friedmann (1991) described the \"retirement\" pattern of the Chinese elderly in the prereform era as \"ceaseless toil\": lacking sufficient means of support, the elderly had to work their entire lives. In this paper we re-cast the metaphor of ceaseless toil in a labor supply model, where we highlight the role of age and deteriorating health. The empirical focus of our paper is (1) Documenting the labor supply patterns of elderly Chinese; and (2) Estimating the extent to which failing health drives retirement. We exploit the panel dimens ion of the 1991-93-97 waves of the China Health and Nutrition Survey, confronting a number of econometric issues, especially the possible contamination of age by cohort effects, and the measurement error of health. In the end, it appears that "ceaseless toil" is also an accurate depiction of elderly Chinese work patterns since economic reform, but failing health only plays a small observable role in explaining declining labor supply over the life-cycle.

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number benjamin-03-01.

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Length: 57 pages
Date of creation: 12 Jun 2003
Date of revision:
Handle: RePEc:tor:tecipa:benjamin-03-01

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Citations

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Cited by:
  1. Eric Edmonds & Kristin Mammen & Douglas L. Miller, 2004. "Rearranging the Family? Income Support and Elderly Living Arrangements in a Low Income Country," NBER Working Papers 10306, National Bureau of Economic Research, Inc.
  2. de Carvalho Filho, Irineu Evangelista, 2008. "Old-age benefits and retirement decisions of rural elderly in Brazil," Journal of Development Economics, Elsevier, vol. 86(1), pages 129-146, April.
  3. Barrientos, Armando, 2012. "What is the Role of Social Pensions in Asia?," ADBI Working Papers 351, Asian Development Bank Institute.
  4. Kai Liu & Marcos Chamon & Eswar Prasad, 2010. "Income Uncertainty and Household Savings in China," IMF Working Papers 10/289, International Monetary Fund.
  5. Giles, John T. & Wang, Dewen & Cai, Wei, 2011. "The Labor Supply and Retirement Behavior of China's Older Workers and Elderly in Comparative Perspective," IZA Discussion Papers 6088, Institute for the Study of Labor (IZA).
  6. Zhao, Zhong, 2007. "Earnings Instability and Earnings Inequality in Urban China: 1989–2006," IZA Discussion Papers 3270, Institute for the Study of Labor (IZA).
  7. Ramon Casadesus-Masanell & Tarun Khanna, 2003. "Globalization and Trust: Theory and Evidence from Cooperatives," William Davidson Institute Working Papers Series wp592, William Davidson Institute at the University of Michigan.
  8. de Brauw, Alan, 2004. "Parents As Public Goods: Theory And Evidence From Rural China," 2004 Annual meeting, August 1-4, Denver, CO 20298, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Zhong Zhao, 2010. "Earnings Instability and Earnings Inequality in Urban China: 1989–2006," Working Papers id:2783, eSocialSciences.

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