July 11, 2024
Overview:
Ill-health is known to impact workforce participation, but most studies assume this effect is similar across all ages. This OHT co-authored study addresses this gap by assessing how ill-health affects different age groups in India’s labor force. Using data from the Longitudinal Ageing Study in India (LASI) covering over 72,000 people aged 45 and older, the research explores the relationship between health and labor outcomes, including participation, earnings, and hours worked.
The Question:
How does ill-health affect labor force participation, earnings, and hours worked across different age groups in India, specifically among middle-aged and elderly workers?
The Findings:
Ill-health reduced labor force participation, with a 28 percent decline among middle-aged adults and a 36 percent decline among elderly individuals. This highlights the strong link between health and workforce engagement, especially in a country with limited social security. The impact of ill-health on wages and hours worked varied by age: elderly workers experienced a more substantial reduction in both earnings and hours worked due to ill-health, while the effect were less pronounced for middle-aged adults. Socioeconomic factors also shape how ill-health influences labor outcomes across age groups. These findings highlight the need to consider age differences when addressing the economic impact of health issues, offering important insights for policymakers and stakeholders in India’s changing socio-economic environment.
Read the article in PLOS ONE here.
