Trends and Characteristics of Labor Force Participation Among Older Persons in Developing Asia: Literature Review and Cross-Country Assessment

This paper examines the pattern and prospects of labor force participation of older persons in developing Asia. We review relevant literature and conduct a detailed analysis of descriptive statistics drawn from the labor force survey micro data of selected countries in the region. Evidence suggests that the structure of social security and pensions, education and health status of workers, household structures and gender norms, and technological change and adoption at the workplace explain the observed patterns of labor supply among older persons in advanced economies. Some of these factors are equally relevant in developing Asia, while others seem to pose divergent impacts. The restricted coverage and depth of social security and pension schemes likely have limited effect in many countries of developing Asia to date, except in selected areas and among educated older workers. The lack of career options upon the first retirement can also explain the early exit from the labor market among the skilled group. This paper recommends public and private actions that could promote longer working lives in the region.