Labor Force Participation among Indian Elderly: Does Health Matter?

The paper analyzes the effect of health status on labour force participation for aged
Indians. The potential endogeneity in health and labour force participation has been taken
care of by using full information maximum likelihood (FIML) and estimation results are
compared with alternative two-stage methods. Results show that health has a significant
and positive effect on labour force participation of the aged. In order to keep enough
supply of elderly in the labour market, sufficient health care is necessary and hence more
investment in this sector is imperative.