Factors Influencing the Decision to Extend Working Life: A Case Study of Thailand
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Abstract
The changes in the population structure have led Thailand to become an aged society since 2005. Thailand’s old-age dependency ratio (64+ per 15-64) increased from 5.44 percent in 1965 to 20.97 percent in 2023. Utilizing the 2018-2023 data from Thailand’s National Labor Force Survey, this paper examines the factors influencing the decision to remain in the labor force, focusing on individuals aged 55-80 years old using Beehr’s framework. Retirement is defined as the individual leaving the labor force with the intention to stay out permanently (Lazear, 1986). The logistic regression model shows that geographic regions, age, gender, education, marital status, and the position of family members in the co-residence composition influence an individual’s decision to remain in the labor force. Males have a significantly higher propensity to remain in the labor force compared to females. Married or single individuals have a significantly higher propensity to remain in the labor force. Individuals whose highest educational attainment was primary, secondary and post-secondary, university level or higher have a higher propensity to remain in the labor force compared to individuals with no education in all years. As family size increases, they have a lower propensity to remain in the labor force. Individuals who are the head of household have a significantly higher propensity to remain in the labor force. The interaction terms between male and head of household have a significantly higher propensity to remain in the labor force. Individuals who are a spouse or married child of the head of household have a significant positive impact on the decision to remain in the labor force. These findings have important implications for Thailand’s old-age policies, encouraging productive aging through employment opportunities while recognizing the importance of family support in enhancing the well-being of older adults.
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