The determinant of hours of work (the empirical case for Indonesian old–age)

Abstract

The increase in the population of old - age or elderly had become an inevitable thing for both developed and developing countries, Indonesia is one of them. With increasing life expectancy, getting healthier, and the desire to stay active; this encourages old – age individuals to carry out economic activities, one of them by working. This activity is not only to fulfill basic needs but also not all individuals of old – age receive pension social security. This paper aims to examine the determinants of the hours of work for old – age or elderly individuals in Indonesia. The paper findings, for old – age individuals who are under 75 years old, the factors influence the hours of work are economic factors (such as wages and non-labor income), the head of household status, marital status, education, urban rural, and industrial origin. However, the old – age individuals who are above 75 years old, these factors have no real influence. Activities carried out by this elderly group, both economic and non-economic, are more about efforts to maintain their routines so that they still feel healthy, they can meet many people, they do not depend on others, and become independent individuals. The suggestion, the government needs to pay attention to working hours and determine the proper industrial origin for elderly who still want to work; they should encourage the care programs for the elderly who come from their families, this is more beneficial for the elderly because it is expected to minimize the risk of illness and death. Furthermore, for old – age individuals who previously worked in the informal sector, the government needs to improve retirement security.