Economic effects of healthy ageing: functional limitation, forgone wages, and medical and long-term care costs

Health Economics Review

Table 5 Functional limitation and economic indicators: Labour market and financial outcomes

	Labour market outcome			Savings and investment		Consumption
	Retirement	Productivity (Hourly wage)	Hours of work	Savings	Securities	Food	Health	Culture and entertainment	Social relationships	Total
Functional limitation	0.03**	-0.11	-0.24	-0.03	-0.04	-0.03	0.29**	-0.01	0.10	-0.01
	(0.01)	(0.16)	(0.21)	(0.11)	(0.09)	(0.04)	(0.07)	(0.07)	(0.08)	(0.03)
Age range	60–89	60–89	60–89	60–95	60–95	60–95	60–95	60–95	60–95	60–95
Observations	21,149	7,853	8,670	19,609	19,874	19,648	19,142	18,466	18,991	19,401
Individuals	3,113	1,555	1,639	2,945	2,976	2,968	2,943	2,889	2,930	2,948
	Time (Hours per week)			Engagement (Yes/No)			Number of activities (Paid and unpaid activities)
	Volunteer	Domestic work	Childcare	Volunteer	Domestic work	Childcare	Number of activities (Paid and unpaid activities)
Functional limitation	-0.02	-0.16**	-0.00	-0.02	-0.07*	0.01	-0.13**	-0.10
	(0.01)	(0.06)	(0.03)	(0.01)	(0.03)	(0.02)	(0.04)	(0.14)
Age range	60–95	60–95	60–95	60–95	60–95	60–95	60–89	60–69
Observations	18,746	18,362	10,771	18,746	18,362	10,771	10,771	6,706
Individuals	2,923	2,848	2,110	2,923	2,848	2,110	2,113	1,525

Note: Estimated by a linear probability model for a binary variable and linear model for continuous variables; Productivity and hours of work are log-transformed; Savings, securities, consumption, and times for unpaid activities are transformed by the inverse hyperbolic sine transformation; The number of activities is a total count of activities that individuals are engaged in, which includes employment; Values represent coefficients with individual-level cluster robust standard errors in parentheses; For labour market outcomes, models include controls for age, age squared, employees’ pension eligibility for the flat benefits and the wage-proportional benefits (only for retirement), self-employment, contract type (only for productivity and hours of work), marital status, house ownership, having a child, household size, prefecture-by-scale-by-year-fixed-effects, and individual-fixed-effects; The analyses for productivity and hours of work include an additional control of the inverse mills ratios predicted in Appendix Table B-2; For financial outcomes and unpaid activities, models include controls for age, age squared, employment status, marital status, house ownership, having a child, household size, equalised household income transformed by the inverse hyperbolic sine transformation, prefecture-by-scale-by-year-fixed-effects, and individual-fixed-effects; Weighted by cross-sectional and longitudinal weights; ** p<0.01, * p<0.05

ISSN: 2191-1991