The Changing Pattern of Labor Participation at Older Ages in China

Labor participation at older ages is an important way of social participation for older persons; it also has strong impacts on their economic resources and life quality. China has 190 million older persons aged 60 and over and projected to increase to 480 million by 2050. Comparing the census data of 2010 and 2000, we find the pattern of labor participation at older ages has been changing dramatically due to the improvement of social security system nationwide, which causes the declining labor participation rate of older ages in urban areas, and the increasing emigration of young people from rural to urban areas, which causes the rapid growth of labor participation at older ages in the rural. The above changing patterns arise various socioeconomic challenges and need policy responses, the key challenges include: does China need to encourage the labor participation at older ages in line with the rapid population ageing and possible shortage of labor force in the near future? What are the consequences of declining labor participation at older ages in urban areas and increasing labor participation in rural area in the long run? What policies should China adapt to enable the older persons to continue their labor participation? This paper analyses the changing pattern, determinants and consequences and give policy recommendations.