ABSTRACT
In about 29 years, Indonesia will encounter a demographic dividend which leads to a less dependency ratio. It means the ratio of senior citizens will grow higher than the ratio of the working-age citizens. A shortage in workforce is the most likely effect of demographic dividend. Therefore, senior citizen workers will be precious assets for the macro and micro economies. In addition, the work ability of senior citizen workers plays a major importance in the socioeconomic development. This study examines work ability from the two most influencing factors: psychological well-being and perceived (mental and physical) health. Job security, motivation to work, and psychosocial work environment affecting the psychological well-being and perceived health are also being studied. This study uses purposive random sampling. The respondents are gathered from regions with the biggest population of senior citizens in Indonesia. Furthermore, from structural equation modeling, this study reveals that job security has significant influence on work ability among Indonesia’s senior citizen workers who have low wages. In addition, job security can be the most significant predictor to work ability. Meanwhile, motivation to work has a negative relationship with psychological well-being and perceived health. The paper also discusses the implication of the results for policy makers and academicians.
