Analyzing Elderly Labour Participation: The Role of Intergenerational Cash Support, Financial and Loneliness in Malaysia

Abstract

Objective – Malaysia's elderly population is expanding at an unprecedented rate, surpassing the pace of ageing in historically established 'aged nations.' Statisticians project that Malaysia will reach 'aged nation' status by 2030, a transition occurring more rapidly than any previously recorded. Methodology – The concept of productive aging is pivotal to national sustainability, implying that the elderly should remain active contributors to society, both socially and economically, to alleviate potential strain on governmental resources. This study probes the labour force participation of Malaysia's elderly by examining the influence of intergenerational cash support, financial status, and feelings of loneliness on their employment decisions. Findings – Employing bivariate and logistic regression analyses, the research conclusively demonstrates that these variables significantly affect labour force engagement among the aged. Specifically, the absence of cash support from employed adult children, lack of savings or investments, and experiences of loneliness increase the probability of the elderly re-entering the workforce. Novelty – The implications of these empirical findings are profound for policymakers, who can utilise this data to craft more nuanced policies aimed at incentivizing labour force re-entry among the elderly. Such policies could not only foster productive ageing but also mitigate the risks of an inactive elderly population during their later years. Type of Paper: Empirical JEL Classification: J14, J18, J22 Keywords: elderly people; financial status; intergenerational cash support; labour force participation; loneliness; sustainability Reference to this paper should be made as follows: Chung, C.F.; Voo, I.C.; Hamid, R.B.A. (2024). Analyzing Elderly Labour Participation: The Role of Intergenerational Cash Support, Financial, and Loneliness in Malaysia, J. Bus. Econ. Review, 9(1), 48–54. https://doi.org/10.35609/jber.2024.9.1(1)