IDEAS home Printed from https://ideas.repec.org/a/dem/demres/v28y2013i26.html
   My bibliography  Save this article

Working life gain from gain in old age life expectancy in India

Author

Listed:
  • Preeti Dhillon

    (International Institute for Population Sciences (IIPS))

  • Laishram Ladusingh

    (International Institute for Population Sciences (IIPS))

Abstract

Background: It is important to evaluate the interaction between increasing life expectancy and changing age patterns in work participation from the perspective of planning for the greying population of India. Objective: This study attempts to answer the question, "Does longevity translate into longer work participation, and further, what are the prospects of old age dependency?" Methods: We project work participation rates (WPR) using two rounds of National Sample Survey data and adopting a cohort approach up to the year 2050, then integrate these projected WPRs with projected life tables to obtain working life tables, so as to assess the average years of working life. Results: We find a decline in WPR from 56.2 to 54.3 per cent among elderly males and an increase from 22.2 to 29.6 per cent among elderly females, during the period 2010-50. Projected working life expectancy (WLE) shows significant gain for both males and females; however, remaining working life as a percentage of remaining life will decrease for males but will increase for females. The old age dependency ratio (ODR) is significantly higher for females than for males. Adjusted ODR (AODR) will increase from 11.4 to 26.3 per cent in the same period. However, there is a 10 per cent shift from female to male contribution in ODR by 2030. Conclusions: Longevity is not translating into longer economic activity for males. For females, longer life expectancy does prolong economic activity. In urban areas, longevity improvements support a longer working life, but the same is not true for rural areas. Moreover, adjusted ODR is higher for females in urbanized states of India.

Suggested Citation

  • Preeti Dhillon & Laishram Ladusingh, 2013. "Working life gain from gain in old age life expectancy in India," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(26), pages 733-762.
    • Handle: RePEc:dem:demres:v:28:y:2013:i:26
    DOI: 10.4054/DemRes.2013.28.26
    as

    Download full text from publisher

    File URL: https://www.demographic-research.org/volumes/vol28/26/28-26.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4054/DemRes.2013.28.26?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vincent P. Crawford & David M. Lilien, 1982. "Erratum: Social Security and the Retirement Decision," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(1), pages 191-191.
    2. Jean-Marc Burniaux & Romain Duval & Florence Jaumotte, 2004. "Coping with Ageing: A Dynamic Approach to Quantify the Impact of Alternative Policy Options on Future Labour Supply in OECD Countries," OECD Economics Department Working Papers 371, OECD Publishing.
    3. Productivity Commission, 2005. "Economic Implications of an Ageing Australia," Research Reports, Productivity Commission, Government of Australia, number 16, January.
    4. Sebnem Kalemli-Ozcan & David Weil, 2010. "Mortality change, the uncertainty effect, and retirement," Journal of Economic Growth, Springer, vol. 15(1), pages 65-91, March.
    5. Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Western Economic Association International, vol. 15(1), pages 1-25, January.
    6. Ronald Lee & Andrew Mason (ed.), 2011. "Population Aging and the Generational Economy," Books, Edward Elgar Publishing, number 13816, December.
    7. Warren C. Sanderson & Sergei Scherbov, 2005. "Average remaining lifetimes can increase as human populations age," Nature, Nature, vol. 435(7043), pages 811-813, June.
    8. Thomas Buettner, 2002. "Approaches and Experiences in Projecting Mortality Patterns for the Oldest-Old," North American Actuarial Journal, Taylor & Francis Journals, vol. 6(3), pages 14-29.
    9. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
    10. Joseph F. Quinn, 1977. "Microeconomic Determinants of Early Retirement: A Cross-Sectional View of White Married Men," Journal of Human Resources, University of Wisconsin Press, vol. 12(3), pages 329-346.
    11. Vodopivec, Milan & Arunatilake, Nisha, 2008. "Population aging and the labor market : the case of Sri Lanka," Social Protection Discussion Papers and Notes 44927, The World Bank.
    12. repec:ilo:ilowps:455325 is not listed on IDEAS
    13. Vincent P. Crawford & David M. Lilien, 1981. "Social Security and the Retirement Decision," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(3), pages 505-529.
    14. Planning Commission, India, 2008. "Eleventh Five Year Plan (2007–2012) Volume I Inclusive Growth," Working Papers id:1582, eSocialSciences.
    15. Carter, Lawrence R. & Lee, Ronald D., 1992. "Modeling and forecasting US sex differentials in mortality," International Journal of Forecasting, Elsevier, vol. 8(3), pages 393-411, November.
    16. Vodopivec, Milan & Arunatilake, Nisha, 2008. "The Impact of Population Aging on the Labor Market: The Case of Sri Lanka," IZA Discussion Papers 3456, Institute of Labor Economics (IZA).
    17. Rajan, Irudaya., 2010. "Demographic ageing and employment in India," ILO Working Papers 994553253402676, International Labour Organization.
    18. P. Arokiasamy & David E. Bloom & Jinkook Lee & Kevin Feeney & Marija Ozolins, 2011. "Longitudinal Aging Study in India: Vision, Design, Implementation, and Some Early Results," PGDA Working Papers 8211, Program on the Global Demography of Aging.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Poulomi Chowdhury & Itismita Mohanty & Akansha Singh & Theo Niyonsenga, 2023. "Informal sector employment and the health outcomes of older workers in India," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-27, February.
    2. Mashkoor Ahmad & Prem Saxena, 2023. "Ageing and age structural transition in major states of India from 1961 to 2011," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(3), pages 433-465, December.
    3. Nabanita Saikia & Nabajit Saikia, 2023. "Change in the Span of Working Life in India: An analysis by Decomposition," Indian Journal of Human Development, , vol. 17(1), pages 96-110, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laurence J. Kotlikoff & David A. Wise, 1988. "Pension Backloading, Wage Taxes, and Work Disincentives," NBER Chapters, in: Tax Policy and the Economy: Volume 2, pages 161-196, National Bureau of Economic Research, Inc.
    2. repec:eee:labchp:v:1:y:1986:i:c:p:305-355 is not listed on IDEAS
    3. Olivia S. Mitchell & Gary S. Fields, 1981. "The Effects of Pensions and Earnings on Retirement: A Review Essay," NBER Working Papers 0772, National Bureau of Economic Research, Inc.
    4. Tomasz Jedynak, 2022. "Does the Formulation of the Decision Problem Affect Retirement?—Framing Effect and Planned Retirement Age," IJERPH, MDPI, vol. 19(4), pages 1-30, February.
    5. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
    6. Torben M. Andersen & Marias H. Gestsson, 2010. "Longevity, Growth and Intergenerational Equity - The Deterministic Case," Economics wp52, Department of Economics, Central bank of Iceland.
    7. J. Ignacio Conde-Ruiz & Vincenzo Galasso & Paola Profeta, "undated". "The Evolution of Retirement," Working Papers 2005-03, FEDEA.
    8. Krueger, Alan B. & Meyer, Bruce D., 2002. "Labor supply effects of social insurance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 33, pages 2327-2392, Elsevier.
    9. Feng, Zhenhua & Lien, Jaimie W. & Zheng, Jie, 2020. "Flexible or mandatory retirement? Welfare implications of retirement policies for a population with heterogeneous health conditions," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 1032-1055.
    10. Linden, Mikael, 2024. "Optimal Retirement Age: Death Hazard Rate Approach," MPRA Paper 120786, University Library of Munich, Germany.
    11. Anthony J. Pellechio, 1981. "Social Security and the Decision to Retire," NBER Working Papers 0734, National Bureau of Economic Research, Inc.
    12. Mao, Hong & Ostaszewski, Krzysztof M. & Wang, Yuling, 2014. "Optimal retirement age, leisure and consumption," Economic Modelling, Elsevier, vol. 43(C), pages 458-464.
    13. David Blake, 2004. "The impact of wealth on consumption and retirement behaviour in the UK," Applied Financial Economics, Taylor & Francis Journals, vol. 14(8), pages 555-576.
    14. Catherine Cazals, 1994. "La retraite dans les modèles d'offre de travail : un survol de la littérature," Économie et Prévision, Programme National Persée, vol. 115(4), pages 43-62.
    15. Jeong, Su Yeon & Kim, Jinyoung, 2020. "Asset or burden? Impact of children on parents’ retirement," Journal of Asian Economics, Elsevier, vol. 71(C).
    16. Andreas Wagener, 2007. "Saving and Retirement Decisions with Pension Risk," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 107-132, March.
    17. David Blake, 2004. "Modelling the composition of personal sector wealth in the UK," Applied Financial Economics, Taylor & Francis Journals, vol. 14(9), pages 611-630.
    18. repec:kap:iaecre:v:12:y:2006:i:4:p:530-539 is not listed on IDEAS
    19. Zweimuller, Josef, 1992. "Partial Retirement and the Earnings Test," Institute for Research on Labor and Employment, Working Paper Series qt1gq8c1t2, Institute of Industrial Relations, UC Berkeley.
    20. Blau, David M., 2011. "Pensions, Household Saving, and Welfare: A Dynamic Analysis," IZA Discussion Papers 5554, Institute of Labor Economics (IZA).
    21. Peter Diamond & Jonathan Gruber, 1997. "Social Security and Retirement in the U.S," NBER Working Papers 6097, National Bureau of Economic Research, Inc.
    22. Juan Lacomba & Francisco Lagos, 2010. "Postponing the legal retirement age," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(3), pages 357-369, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dem:demres:v:28:y:2013:i:26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Editorial Office (email available below). General contact details of provider: https://www.demogr.mpg.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.