The contribution of older adults to the household economy: evidence from the Indonesia national socioeconomic survey

Purpose The study provides empirical evidence of older adults' economic contributions, broadening understanding of aging and complementing demographic dependency perspectives. Design/methodology/approach The study measured the economic contribution of older adults in two ways: by analyzing their share of total household working hours and income, using data from the 2020 National Socioeconomic Survey in Indonesia (SUSENAS). Working hours for both older and non-older adults were estimated using the Tobit model, while income, including both older and non-older adults, was assessed using the Mincerian earning function. Findings The study found that older adults in Indonesia contribute significantly to the household economy through labor supply and income. Their contribution to the household economy is more significant through labor supply than through income. These findings suggest that older adults remain valuable contributors to household economies and should not be viewed solely through the lens of economic dependency. Research limitations/implications The study relies on statistical modeling to assess older adults' economic contributions and does not capture household members' perceptions. Practical implications These findings suggest that perspectives on older adults should extend beyond demographic dependency by recognizing their contributions to household economies. Social implications Given empirical evidence that older adults contribute to household economies, they should not be viewed solely as dependents within households. Originality/value The study broadens understanding of older adults' economic roles, showing they are contributors as well as recipients within household economies.