DETERMINANTS OF WORKING IN OLD AGE: EVIDENCE FROM SRI LANKA

Abstract

This study aimed to investigate the determinants of labour force participation among elderly individuals in Sri Lanka, specifically focusing on the influence of health status. By employing data from the 2018 Labor Force Survey (LFS), the analysis utilized both descriptive and regression approaches to examine how different socioeconomic factors, household characteristics, and education levels shape the decision of older adults to remain economically active. The study illuminated how variations in these factors affect labour force participation through logistic regression, underscoring health's critical role in the economic activity of elderly individuals. The findings of this study reveal that health is a crucial determinant of labour force participation among older adults. Elderly individuals with excellent or manageable health conditions are significantly more likely to remain active in the labour force compared to those facing severe health challenges. This highlights the importance of promoting healthy ageing, which can directly impact extending the working lives of older adults. The data suggest that if policies and programs were implemented to support healthier ageing, labour force participation among older people could increase by approximately 10%. This is particularly relevant in Sri Lanka’s rapidly ageing population, where many older individuals could contribute to the economy if they remain in good health.
Keywords:

Labour force participation, old aged, health, logistic regression, Sri Lanka