Returning to Work: Older Adults' Labor Force Participation and Health Status

Shaoxiang Jiang, Yinhe Liang, Ruoying Mei and Shuang Yu

China & World Economy, 2025, vol. 33, issue 6, 1-28

Abstract: This study investigated the effects of labor force participation on the physical and mental health of older adults, using the implementation of the provincial‐level Regulations on the Protection of the Rights and Interests of the Olderly as an entry point and applying the control function method to address endogeneity. The results indicate that the labor force participation of older adults improved their physical health significantly but had no significant effect on mental health. The positive effect on physical health was stronger for women, urban residents, those with lower education levels, and those with health insurance. Labor force participation operated through income effects and health behavior channels but no evidence was found for a social support channel. These results suggest that removing institutional barriers and empowering older adults can help to address the challenges of an aging population and promote a healthier China.

Date: 2025
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