Health impact: longitudinal analysis of employment at middle and old age in Mexico.

We use longitudinal data from the Mexican Health and Aging Study to analyze the relationship between health and labor force participation of population aged 50 years and older in Mexico. The results confirm that health, measured through chronic diseases and difficulty to perform activities of daily living, has a powerful influence on labor force participation. We also find important differences by gender; hypertension and diabetes have effects in both, men and women; heart disease and stroke only in men. We provide concrete evidence on economic participation and highlight the importance of public policies to create adequate jobs for the population at middle and old age.