Despite rapid demographic transitions and population aging in Korea, public policies seem to lag behind the needs of elderly people. Limited public pensions and insufficient financial provision for later life keep elderly people staying longer in or returning to the labor force. We examine a dynamic relationship between health status and labor force participation among elderly people using the Korea Welfare Panel Study from 2006 to 2017. For the dynamic panel estimation, we adopt two models: the Arellano and Bond Generalized Method of Moment Model and Maximum Likelihood Structural Equation Model. We separate the elderly people by age, gender, and region for the subgroup analysis. We expect to find evidence for causal effects of the short-term change in labor force participation on health status. The dynamic panel data modeling may offer new insights into the relationship between labor force participation of elderly people and their health status.
Presented in Session 6. Health & Mortality & Aging