The urban-rural disparities of the elderly labor supply and income in China

The labor supply behavior of the elderly becomes a window reflects the difference between urban and rural in China. However, the existing studies have not reflected the continuation of the income and social security gap on the elderly labor supply between urban and rural residents. Based on the CHARLS database, this paper investigates the differences in the elderly labor supply between rural and urban in China, analyzes their influencing factors by the Probit model, and conducts an empirical study on the health and income of the elderly by the Heckman sample selection model. The study found that: Age, pension and other factors have a significant impact on the elderly labor supply, and the impact on the urban is far more than the rural. Health and other factors have significant impact only on the rural elderly labor supply and income. The study recommends the extension of social security to the poor health of rural elderly. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of [CEIS 2011]