Life-Cycle Labor Supply and Physiological Aging across Countries
Carl-Johan Dalgaard,
Casper Hansen and
Holger Strulik
No 17713, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Abstract:
We construct a cohort-based frailty index for 181 countries over the period 1990-2019. We use this macro measure of physiological aging to estimate the impact of deteriorating health on labor force participation. Our three-dimensional panel framework, in which the unit of observation is a cohort in a given country at a given age, allows us to control for a range of unobserved factors. Our identification strategy further exploits a compensating law of physiological aging to account for reverse causality. We find a negative effect of physiological aging on labor market participation: a one percent increase in the frailty index leads to a reduction of labor force participation of about 0.6 percentage points. Since health deficits (in the frailty index) are accumulated at a rate of about 3 percent per year of life, almost all of the age-related decline in labor force participation can be motivated by deteriorating health.
Keywords: Health (search for similar items in EconPapers)
JEL-codes: E24 I10 I15 J21 J26 (search for similar items in EconPapers)
Date: 2022-11
References: Add references at CitEc
Citations:
Downloads: (external link)
https://cepr.org/publications/DP17713 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:17713
Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP17713
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().