Review on the Relationship between Health and the Elderly Labor Supply

With the advent of population aging, it is necessary to explore the relationship between health and the elderly labor supply. Health is a multidimensional index with the difficulty to evaluate the people’s health. Health will affect the elderly labor supply through influencing people’s labor productivity and preference for leisure. At the same time, retirement also affects the elderly's health. This paper firstly introduces the various health indicators and reviews the literatures on health and the elderly labor supply. Then it pays much attention to the causal relationship and endogenous problem between health and labor supply, and summarizes the different methods aiming to overcome the endogenous problem. Finally, it analyzes policy implication and puts forward the future research direction.