Identifying Factors Influencing Productivity of Older Workers in Service Sector: A Case Study in Pilot Companies in Thailand

Abstract

Productivity has posed issues for global countries in terms of promoting older employment due to an emergence of questions regarding production efficiency. Individual characteristics result in varying production efficiencies, which in turn provide different levels of productivity. Taking this concern into account, we are here to examine the characteristics of older workers who provide high productivity in order to seek recommendations for fostering decent work for them. We utilized the dataset collected from the pilot service companies in Thailand who participated in a national initiative program for employing older people. A total of 204 older workers and their characters were then observed. Those characters were analyzed by the Generalized Ordered Logit Regression (gologit) model. Empirical findings indicate that allocating work that is related to communication and coordination to older workers would enhance odd ratio of their productivity by as much as 4.79 times compared to general tasks. Furthermore, employing older individuals on a part-time basis tends to generate higher-level productivity than full-time employment. We also found that gender and age differences have no significant effect on productivity in the service sector as people age, and factors related to types of employment, education, health, and financial status are also a precise determinant for the productivity of older workers. This would suggest that the work design for the older workers must be in line with the aforementioned determinants. In addition, the government initiatives utilizing key findings from this study to boost older workers’ productivity should give priority on tax incentives, promoting and advocating for employment equality, and vocationalization programs.