Impacts of Educational-and-Political Status and Physical-and-Mental Health on Labor Supply with Two-Part Model

Abstract

This study studies the impacts of educational-and-political status and physical-and-mental health on labor supply in China. In addition, the model includes instrumental variables to guarantee good interpretability. Previous literature researches emphasize on only the relationship of health and labor supply, but not the covariate effects of health and other variables. There is no study explaining educational-and-political status’ influence on labor supply, and political status is a factor with Chinese characteristics. This study innovatively combines educational-and-political status and physical-and-mental health to explore the impacts on Chinese labor market. This study adopts a two-part model, combining logistic and linear models, with mathematical proofs.The results can conclude in four perspectives. First, concerning the educational status, middle school graduates work the longest, which might be caused by the education minimum academic requirement set by the job market. If the minimum requirement is met, a higher degree means a less amount of labor supply. Second, compared with Democrats, the Mass, and members of the Communist Youth League, Communists averagely work for two fewer hours, which might be the case that civil servants, most of whom are the Communist Party member, hold a stable clock system. Third, the more physically healthier and the more mentally depressive, the more labor supply. Fourth, those with poorest physical health have an exceptionally high labor participation rate (the probability of working for more than zero hour), which may imply that the government treats them, including the disabled, with extra vehicle, for example, the government arranges jobs for them as their capacity allows.