Aging Gracefully: Economic Participation and the Silver Economy in India - Using LASI Data 2017-2018 wave

Abstract

Background: The older adult population is gradually on the rise. More emphasis is focused on economic participation and silver economy to improve the overall QoL. However, there is dearth of studies that capture the economic participation and factors that influence economic participation in older adults and ways how to improve the silver economy. This study aims to address this problem.
Methodology: This study is a secondary analysis of the wave 1 of the Longitudinal aging study of India. Descriptive analysis examined state-level variation in economic participation. Structured Equation model was used to assess associations between various clinical and socio-demographic characteristics and different levels of participation. In addition, machine learning classification and clustering models were also used to identify patterns and predictors related to economic participation.
Results: This study observed that nearly one-third of India’s older adults remain economically active, largely within informal forms of work. Considerable variation was observed across states and regions. Economic participation was more common among men, individuals with lower educational attainment. Spatial analysis revealed clusters of higher economic engagement in predominantly developed states. The machine-learning models observed health, and financial security as one of the primaries contributes to economic participation. Cluster analysis highlighted that economic participation across India can be divided into three clusters and developed states has better silver economy prospects.
Conclusion: The study argues that economic participation in later life should not be interpreted uniformly as a sign of well-being. For many older adults, continued work reflects economic compulsion shaped by inadequate social protection and healthcare access. For others, it represents continuity, independence, and the maintenance of social roles. These findings underline the need for region-specific and health-sensitive policy responses.