Retired Seniors’ Willingness, Behavior, and Influencing Factors of Labor Supply and also on the Importance of Reducing Smoking

Active aging is not only an effective strategy to deal with population aging but also an important method to increase the effective labor supply. The health, education and age of the retired are obviously affect labor supply. Using a typical sample survey, this paper analyzes the willingness and behavior of retired seniors to supply labor, via a labor participation model and a labor supply model. It verifies the direct effects of various factors of active aging on the labor participation decision and the level of labor supply of retired seniors. The results show that age, pension, health, and other income are the main factors that affect the labor participation decision of retired seniors while education level, health, pension, other income, the number of family members in need of care, and the interaction term of health and age are the main factors that affect the level of labor participation of retired seniors. The government should build a policy to tap the labor supply potential of retired seniors, such as proposing legislations to reduce cigarette smoking thus enhancing health of retired people.