Introduction: As part of an effort to prepare for the entry into an ageing society, many OECD countries including Korea have formulated a number of long-term strategies. One of such plans involves the sustainment of employment among the aged, restricting pathways to early retirement and promoting a more gradual transition to retirement. Retaining old workers in the labor market has been regarded in rather positive light as it is arguably effective in reducing the public expenditures. However, one may question the effective of such approach. This is particularly relevant in Korea where the employment rate of the aged is the highest among OECD countries. Given that many of the aged remain in the market mainly for the reasons of economic sustainment due to the yet stabilized social security system, it is plausible that government strategies to elongate the employment period may be ineffective in promoting the wellbeing of the aged as work itself may be a source of great psychological stress. This paper thus examines the relationship between their employment and mental health, namely depression. In doing so, the paper can provide an empirical basis on which better intervention policies can be developed for the aged in Korea as well as Asia.
Method: Using Korean Longitudinal Study of Ageing (KLoSA), this study examines the relationship between the labor market participation of the aged and depression. The analyses comprise of two main parts: first, the relationship between the two is examined using structural equation modeling (SEM) and second, the relationship is examined between the two age groups, those below 65 years of age and the above using multi-group analysis to see if any differences exist in the level of depression between the age groups.
Results & Discussion: The model fit of the full path model was considered satisfactory given that the model yielded RMSEA of .057, IFI and CFI values of .964 with chi-square value of 1645.276 (df=76, p<.05). The findings show that variables that were significant in predicting the level of depression among the aged were employment status, household income, health status, education, marital status, and participation in social activities. More specifically, individuals who reported of being employed, married, healthy, and socially active and having higher income and educational background were found to be less depressed than their counterparts. The result of the multi-group analyses, however, reveals an interesting finding. While other socio-demographic variables remain to have the same effect on both the below 65 and above 65 groups, the employment status affects the depression level only in the below 65 age group. This finding implies that labor market participation does not carry a significant meaning to the psychological wellbeing of those over 65 years of age, which is contrary to the findings of the previous literatures as well as the active ageing paradigm that is promoted across the ageing societies. This study further provides several plausible explanations for these findings as well as both policy and practice implications.