ANALYSIS OF THE POTENTIAL CONTRIBUTION OF THE SILVER ECONOMY IN THAILAND

Abstract

There has been a dramatic increase in the older population size in Thailand and also other countries worldwide, leading to changes in population age structure; therefore, the structure of the working-age adult population has changed, and this might affect the national economy and GDP. This study aims to explore the factors affecting the contribution of the economic activity of the ageing population, the so-called silver economy, and to estimate the contribution of the ageing population to Thailand’s total GDP. The findings show that gender, education level, career and income, along with frequency of internet use, device and internet access point, affect the contribution of the silver economy. Having taken both in-cash and in-kind incomes into account, the silver economy is calculated in this study as approximately 3,389 billion baht per year or 111.401 billion US dollars per year; in other words, Thai older adults are able to contribute one fifth of the country’s GDP. The paper suggests that the retirement age could be extended in order to increase opportunities for quality ageing workers and benefits might be offered for companies that hire these skilled seniors. Moreover, new vocational skills or skills related to elderly’s interests should be provided. Consequently, the ageing population can drive the nation’s economy, leading to economic growth in Thailand.