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Health and Labour Force Participation of Older Age Groups

Student: Anna Lisitsyna

Supervisor: Ekaterina Aleksandrova

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2021

This study examines the impact of health on labor force participation among Russian citizens of older age groups. The main aspects of the relationship under study were considered, including the retirement patterns in Russia and differences in employment between men and women. Simultaneous equations were chosen as the methodology to reduce the problem of endogeneity of health and identify its sources, as well as to take into account the reciprocity of health and labor force participation. In our analysis, panel data from RLMS-HSE of 2012-2019 revealed that high levels of health were positively associated with continued employment for older adults in Russia. In addition, differences were found between men and women in the influence of other factors on the decision to retire. Moreover, it was found that the level of employment also affects health, and the assumption that there is an endogeneity problem of health in the data was confirmed. So, the simultaneous equations method allows us to investigate the relationship in the most comprehensive way.

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