The Power of Belief: Does Religious Belief Promote More Elderly Labor Supply in China

ABSTRACT It is important to leverage the potential of elderly human resources in an aging society. This study explores the effect of religious belief on elderly labor supply in China, using data from the 2018 China Family Panel Survey. The findings reveal that religious belief significantly promotes elderly labor supply, with the effect primarily driven by Buddhism‐related and Taoism‐related belief. These effects are more pronounced among urban and eastern region residents, older cohorts, and those with fewer children or lower financial transfers from their children. Mechanism analysis highlights that the enhancement of value recognition and health human capital, induced by religious belief, plays a pivotal role in promoting elderly labor supply. Although religious belief also improves their social capital, this mechanism has no correlation with elderly labor supply. These results offer valuable insights for policymakers in addressing the challenge of sustaining labor force participation in aging populations.