Aging, health and labour market activity: the case of India.

Abstract

This paper explores the intricate relationship between the health status of the elderly and their labour market participation in rural and urban India. Data for the study are drawn from a nationally representative survey--the 1995/96 National Sample Survey. Using probit regression and propensity-score matching techniques, we found that chronic illnesses and disabilities negatively impact labour market participation across all model specifications and estimation techniques. The effect is stronger in rural than in urban areas.