Healthy Aging and Labor Market Participation in Korea

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.