Self-Employment Transitions and Health Outcomes in Later Life: Evidence From China

  • 0School of Social Work, University of Illinois at Urbana-Champaign, Urbana, Illinois, USA.

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Summary

This summary is machine-generated.

Older workers in China transitioning to self-employment experience poorer health and life satisfaction. This is especially true for agricultural workers with lower education, highlighting the need for supportive policies.

Area Of Science

  • Gerontology
  • Public Health
  • Sociology of Work

Background

  • Self-employment offers an alternative to waged employment for older workers nearing retirement.
  • Limited research exists on the health impacts of employment transitions (self- vs. waged) for older adults, especially outside Western countries.
  • China's unique socioeconomic context necessitates examining these transitions by household registration status (hukou), region, and education.

Purpose Of The Study

  • To investigate the health consequences of employment transitions among older Chinese workers.
  • To differentiate the health impacts of transitioning into, out of, or remaining in self-employment versus waged employment.
  • To explore how factors like hukou, region, and education modify these health impacts.

Main Methods

  • Utilized fixed-effect models on longitudinal data from the China Health and Retirement Longitudinal Study (2011-2018).
  • Analyzed cognitive, mental, physical health, and life satisfaction outcomes for 4,606 older adults.
  • Separately examined agricultural and nonagricultural work due to China's specific labor market structure.

Main Results

  • Individuals entering or staying in self-employment reported lower self-rated health and life satisfaction compared to those in waged employment.
  • No significant differences were found in cognitive functioning or depressive symptoms between employment types.
  • Transitioning from self-employment to waged employment was associated with worse self-rated health than remaining in waged employment.
  • Health impacts were more pronounced for agricultural self-employment, particularly for urban residents with rural hukou and lower educational attainment.

Conclusions

  • Older Chinese individuals often enter self-employment due to low human capital and socioeconomic status, negatively impacting their health.
  • Policy interventions, including pension reforms and support for older workforce participation, are crucial.
  • These policies can help mitigate health disparities between rural and urban older adults and those with varying socioeconomic backgrounds.

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