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

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.