The Indian labor market and elderly: acclimatizing to an aging population in the workplace

Abstract

The study explores the trends and patterns of the labor force participation (LFPR) of the elderly in India’s labor market over the last one and half decades using the NSSO’s (EUS and PLFS) unit-level datasets (2004–2005 to 2019–2020). The findings of the study show that the labor force participation rate (LFPR) of the elderly in India has declined between 2004–2005 (38.9%) and 2018–2019 (28.5%) and showed a moderate increase in 2019–2020 (32.6%). It is observed that a large proportion of the elderly workforce are engaged in the agricultural sector and mostly in the informal sector and in casual and self-employed activities. Further, elderly females are less likely to participate than their male counterparts in the labor market. The logit estimates reflect that the level of education is found to be a significant predictor of their labor employability. The risk of low WPR may lead to low spending on health, an increase in morbidities, risks of social isolation, and less supportive opportunities for socioeconomic participation. Thus, to address the issue, the study suggests that inclusive, secure, and protective or remedial social security measures are required to be adopted for the elderly.