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Health and Labor Force Participation of the Elderly in Taiwan

Author

Listed:
  • Cem Mete
  • T. Paul Schultz

    () (Economic Growth Center, Yale University)

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.

Suggested Citation

  • Cem Mete & T. Paul Schultz, 2002. "Health and Labor Force Participation of the Elderly in Taiwan," Working Papers 846, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:846
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp846.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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;European Society for Population Economics, vol. 21(4), pages 1007-1033, October.
    2. 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.
    3. 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 Economics, Australian National University.
    4. Kamhon Kan & Yen-Ling Lin, 2009. "The labor market effects of national health insurance: evidence from Taiwan," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 311-350, April.
    5. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo, 2015. "Estado de salud y participación laboral: Evidencia para Colombia," Borradores de Economia 851, Banco de la Republica de Colombia.
    6. Laura Romeu Gordo, 2011. "Compression of morbidity and the labour supply of older people," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 503-513.
    7. United Nations Population Fund UNFPA, 2013. "Building a Knowledge Base on Population Ageing in India: Report on the Status of Elderly in Select States of India, 2011," Working Papers id:5209, eSocialSciences.
    8. Hsin-Ling Hsieh, 2008. "Do Adult Children Matter?-The Effects Of National Health Insurance On Retirement Behavior: Evidence From Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 317-334, April.
    9. 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.

    More about this item

    Keywords

    Labor Force Participation; Elderly; Health Status; National Health Insurance; Taiwan;

    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

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