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

Deborah Davis-Friedmann (1991) described the retiremento pattern of the Chinese elderly in the prereform era as ceaseless toilo: 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 toilo 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.
RPRT
Working Papers
Benjamin, Dwayne
Brandt, Loren
Fan, Jia-Zhueng
2003
University of Toronto, Department of Economics
126