TAILIEUCHUNG - HEALTH AND LABOR FORCE PARTICIPATION OF THE ELDERLY IN TAIWAN

There is a growing body of evidence which demonstrates that following a diet that complies with the Dietary Guidelines may reduce the risk of chronic disease. Recently, it was reported that dietary patterns consistent with recommended dietary guidance were associated with a lower risk of mortality among individuals age 45 years and older in the United The authors of the study estimated that about 16 percent and 9 percent of mortality from any cause in men and women, respectively, could be eliminated by the adoption of desirable dietary behaviors. Currently, adherence to the Dietary Guidelines is low among the . population. Data from USDA illustrate the degree of change in the overall dietary pattern of Americans needed to be consistent with a food pattern encouraged by the Dietary Guidelines (fig. 1). A basic premise of the Dietary Guidelines is that nutrient needs should be met primarily through consuming foods. Foods provide an array of nutrients (as well as phyto­ chemicals, antioxidants, etc.) and other compounds that may have beneficial effects on health. In some cases, forti­ fied foods may be useful sources of one or more nutrients that otherwise might be consumed in less than recom­ mended amounts. Supplements may be useful when they fill a specific identified nutrient gap that cannot or is not otherwise being met by the individual’s intake of food. Nutrient supplements cannot replace a healthful diet. Individuals who are already consuming the recommended amount of a nutrient in food will not achieve any addi­ tional health benefit if they also take the nutrient as a supplement. In fact, in some cases, supplements and fortified foods may cause intakes to exceed the safe levels of nutrients. Another important premise of the Dietary Guidelines is that foods should be prepared and handled in such a way that reduces risk of foodborne illness. . | ECONOMIC GROWTH CENTER YALE UNIVERSITY . Box 208269 New Haven CT 06520-8269 http egcenter CENTER DISCUSSION PAPER NO. 846 HEALTH AND LABOR FORCE PARTICIPATION OF THE ELDERLY IN TAIWAN Cem Mete Yale University T. Paul Schultz Yale University June 2002 Notes Center Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments. We acknowledge grant support from the Rockefeller Foundation for training and research in the economics of the family in low-income countries and that from the Population Council postdoctoral fellowship program. This paper can be downloaded without charge from the Social Science Research Network electronic library at http abstract id 317981 An index to papers in the Economic Growth Center Discussion Paper Series is located at http egcenter Abstract Estimates are reported of the consequences of health on participation in the labor force of elderly men and women in Taiwan from 1989 to 1996. Three survey indicators of individual health are examined and two are estimated by instrumental variables IV using as instruments parent longevity birthplace and childhood conditions. IV estimates of health s effect on participation are in most cases significant and always positive and about twice the magnitude of the ordinary least squares estimates and the hypothesis that health is exogenous and measured without error is rejected. Implementation in 1995 of a National Health Insurance NHI shifted to the state the growing cost of elderly health care and reduced the incentive for elderly to work to receive employer-provided health insurance. But this change in health care financing does not appear to have contributed to a reduction in elderly participation rates in 1996. Keywords Labor Force Participation Elderly Health Status National Health Insurance Taiwan JEL Classification J22 J26 I10 I18 1. Introduction Economic performance of low-income countries may be .

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