The Employment Status of the Elderly in Sri Lanka: Patterns and Determinants

By using the Sri Lanka Household Income and Expenditure Surveys in 2002, 2006/2007, and 2009/2010, this paper examines patterns and determinants of employment status of the Sri Lankan elderly. The study employs multinomial logit model to realize the research objectives. The results of the study reveal that more than 50 percent of the Sri Lankan elderly are currently inactive, yet five percent of the oldest elderly and 18 percent of the elderly with bad health conditions are engaged in labor market activities. The results further demonstrate that younger male elderly, who are married and living in female-headed households are more likely to be employed than to be inactive. The receipts of remittances, social security payments, and bad health conditions reduce the probability of being employed. At present, ethnicity does not play a significant role in determining employment status of the Sri Lankan elderly.