December 5, 2025

Healthy Aging and Labor Market Participation in Korea

Key Points

Healthy aging increases labor supply by about 1.9 percentage points per year from 2006 to 2020, enhancing workforce engagement.
Better health boosts the probability of older individuals participating in the labor market and delaying retirement.
Observational analysis highlights the significant role of health improvements on labor market outcomes for older individuals.
Reforms promoting employment of elderly workers may help mitigate negative aging effects on labor supply.

Abstract

This paper investigate whether health improvements among Korean older workers influence their labor market outcomes, such as the decision to supply labor or to retire. The findings reveal that better health increases the probability of participating in the labor force and postponing retirement. Overall, the results suggest that healthy aging has increased the labor supply of older individuals in Korea by around 1.9 percentage points per year during the 2006-20 period. Reforms to promoting employment of elderly workers can boost labor supply and help mitigate the adverse effects of ageing on the labor market.

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Cite This Study

Lagerborg et al. (Mon,) studied this question.

synapsesocial.com/papers/6932313d8e51979591dcefd1 https://doi.org/https://doi.org/10.5089/9798229032773.018

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