Work history and functional limitations in later life under institutional change: economic reform and work sequences in China

Objective: This study examines the impact of work history on functional limitations in later life among individuals who experienced China’s 1978 economic reform. Methods: Data were drawn from the 2011–18 China Health and Retirement Longitudinal Study (CHARLS) for respondents born between 1935 and 1964. Sequence analysis was used to categorise work histories by type and duration. Random intercept multilevel Tobit models were applied to estimate the effects of work trajectories on functional limitations in later life. Results: The economic reform facilitated transitions from farming to non-rural work for rural workers, yet hukou-based urban–rural divisions shaped access to pensions, medical insurance and housing benefits. Urban work is associated with lower functional limitations than self-employment for urban hukou holders. Younger migrant workers and rural workers who were mainly engaged in self-employment or urban work have lower levels of functional limitations than those who were mainly engaged in farming or rural work. Conclusion: Work history was significantly shaped by the urban–rural hukou system. Rural hukou holders had fewer opportunities for non-rural employment, limiting their access to pensions, healthcare and better living conditions. Those engaged in rural work experienced significantly higher functional limitations compared to individuals in other employment types.