Health Capacity to Work among Older Malaysians

Norma Mansor, Halimah Awang () and Donghyun Park
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Norma Mansor: Social Wellbeing Research Centre, Universiti Malaya, Kuala Lumpur, Malaysia
Halimah Awang: Social Wellbeing Research Centre, Universiti Malaya, Kuala Lumpur, Malaysia

Asian Development Review (ADR), 2024, vol. 41, issue 01, 147-168

Abstract: This paper uses two methodologies to explore the extent to which greater labor force participation among older Malaysians can expand Malaysia’s labor supply. The Milligan–Wise method estimates the potential to increase the labor force participation rate of older Malaysians by estimating how much they would work if they were to work as much as those with the same mortality rate in the past. The Cutler, Meara, and Richards-Shubik (2013) method estimates the same potential by estimating how much older Malaysians would work if they worked as much as their younger counterparts in similar health. We made further simulations to quantify the capacity of older Malaysians to work after they are 60 years old. The results show significant additional work capacity among older people in Malaysia, particularly males, urban dwellers, and those with low educational attainment.

Keywords: aging; health capacity; labor supply; Malaysia; simulation (search for similar items in EconPapers)
JEL-codes: J18 J21 J26 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:adrxxx:v:41:y:2024:i:01:n:s0116110524400043

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DOI: 10.1142/S0116110524400043

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