Factors Associated with Life Satisfaction among Older Workers

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Factors Associated with Life Satisfaction among
Older Workers

• Jessica K. M. Johnson

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Abstract

• With life expectancy on the rise, some
  individuals may need and/or want to work longer.
• Using a subset of the 2002 National Study of the
  Changing Workforce dataset (N664), this study
  uses logistic regression analysis to explore the
  roles of socio-demographics, individual
  capacities and workplace resources in life
  satisfaction.
• The studys findings suggest that good health,
  social support, adequate finances and access to
  flexible work arrangements facilitate life
  satisfaction among older workers.

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Introduction

• As individuals age, they are less likely to enter
  the labor force (see Figure 1) (United States
  Department of Labor, 2005).
• However, employment among older individuals (i.e.
  age 50 and over) is increasing, particularly
  among females (see Figure 2) (AARP, 2002).
• Increased labor force participation rates may, in
  part, be due to increased life expectancy.
• In the United States, life expectancy at birth
  increased by 55 from 49 in 1900 to 77 in 1997
  (AARP, 2002).
• In anticipation of longer lives, some individuals
  may need and/or want to work longer.
• This study uses the 2002 National Study of the
  Changing Workforce dataset to explore factors
  associated with life satisfaction among this
  growing population of older workers.

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Figure 1. Percentage of the Population That is
Employed by Age
Source United States Department of Labor (2005)
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Figure 2. Labor Force Participation Rate of
Persons Age 50 and Over
Source AARP (2002)
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Background Information

• The National Study of the Changing Workforce is a
  nationally representative cross-sectional study
  of workers that is conducted once every five
  years.
• Survey data are collected during 45-minute
  interviews using a computer-assisted telephone
  interviewing system.

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Background Information

• Participants include people who
• Work at paid jobs or operate income-producing
  businesses,
• Are 18 years or older,
• Are in the civilian labor force,
• Reside in the contiguous 48 states, and
• Live in non-institutional residences.
• The 2002 sample consists of 2,810 wage and
  salaried workers, 179 small business owners and
  515 self employed, independent workers.

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Older Worker Sample Characteristics

• This analysis focuses on a subset of the 2002
  National Study of the Changing Workforce dataset
  664 wage and salaried workers who are age 50 and
  above.
• These workers are, on average, 57 years old.
• About 60 of them work for private for-profit
  businesses.
• They typically live with one other person.
• In 2002, they earned a mean of 45,529 and their
  partners earned a mean of 48,150.
• Most are female, white non-Hispanic and in good
  health (see Figure 3).
• Many have access to health insurance paid in part
  or full by their employers, as well as workplace
  retirement benefits (see Figure 4).
• Close to 48 of them are very satisfied with
  life.

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Figure 3. Older Worker Socio-Demographics and
Capacities
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Figure 4. Older Workers Access to Workplace
Resources
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Method

• This studys conceptual framework is a modified
  version of the later-life productivity model put
  forth by Sherraden, Morrow-Howell, Hinterlong
  Rozario (2001) (see Figure 5).
• Life satisfaction was regressed on measures of
  socio-demographics, individual capacities and
  access to workplace resources.

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Figure 5. Conceptual Framework
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Logistic Regression Results

• Among older workers, the odds of being very
  satisfied with life are (see Table 1)
• 71 higher for females than for males,
• 44 lower for white non-Hispanics than for people
  of other ethnic/racial backgrounds,
• 9 higher with every additional year in age,
• 193 higher for those in good or excellent health
  than for those poor or fair health,
• 146 higher for those living with spouses or
  partners than for those in other living
  arrangements,
• 110 higher for those with extra money after
  monthly expenses than for those without such
  additional funds,
• 52 higher for those who have employers that
  contribute to their pension or retirement plans
  than for those who do not, and
• 75 higher for those who have a high level of
  flexibility on the job than for those who do not.

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Table 1. Logistic Regression Results

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Discussion

• As expected, socio-demographics, health, social
  support and finances play strong roles in the
  achievement of life satisfaction among older
  workers.
• Even when controlling for the influence of such
  individual characteristics and capacities, access
  to higher levels of workplace resources clearly
  increases the likelihood of achieving life
  satisfaction.
• Interestingly, absolute income does not appear to
  directly impact life satisfaction relative
  income (i.e. ones income in comparison to ones
  monthly expenses) is more important.
• The ability to cover monthly expenses with enough
  additional money to build a protective financial
  cushion is crucial in achieving life satisfaction.

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Future Research Next Steps

• Researchers should look more closely at the
  influence of the following factors, which were
  unexpectedly not significant predictors in the
  current study
• Educational attainment,
• Managerial or professional employment status, and
• Access to health insurance covered in part or
  whole by employers.
• The following unexamined factors should be
  considered
• Type of employment,
• Other sources of family income and financial
  security,
• Time spent traveling to and from work,
• Mental health,
• Autonomy on-the-job,
• Discrimination on-the-job,
• Social support received from friends and
  relatives, and
• Public policy.

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Future Research Next Steps

• Researchers should explore facilitators of life
  satisfaction among certain satisfied groups, like
  females.
• Policy-makers, employers and workers have a lot
  to learn from such satisfied groups.
• Researchers should identify inhibitors of life
  satisfaction among certain unsatisfied groups,
  like individuals without money left over after
  paying for monthly expenses.
• Such individuals seem to have limited resources
  and represent a particularly vulnerable group
  that deserves attention.

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Characteristics of Older Workers with and without
Financial Security

• In 2002, respondents without extra money after
  paying for monthly expenses earned, on average,
  33,813.
• Their partners earned an average of 36,873.
• They are more likely than those with extra money
  to be female and less likely to be white
  non-Hispanic, have a Bachelor or higher degree,
  be in good health, and live with a partner (see
  Figure 6).
• They have access to fewer workplace resources
  than those with extra money (see Figure 7).
• Approximately 35 of them are very satisfied with
  their lives.

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Figure 6. Socio-Demographics and Capacities of
Older Workers with and without Financial Security
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Figure 7. Access to Workplace Resources among
Older Workers with and without Financial Security
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Conclusions

• This study confirms the expectation that good
  health and social support facilitate life
  satisfaction among older workers. In addition,
  while it establishes the role of financial
  security in life satisfaction, it distinguishes
  between absolute and relative income. The
  capacity to build a financial safety net for
  oneself, above and beyond what is required to
  cover monthly expenses, is crucial. Finally,
  access to flexible scheduling options and
  retirement benefits also facilitates life
  satisfaction among older workers. Policy-makers
  and employers should consider strategies to
  increase vulnerable workers access to these
  resources.

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References

• AARP. (2002). Beyond 50 Summary tables and
  charts. Retrieved January 30, 2006, from
  http//www.aarp.org/research/reference/statistics/
  aresearch-import-298.html
• Sherraden, Morrow-Howell, Hinterlong Rozario
  (2001). Productive aging Theoretical choices
  and directions. In. N. Morrow-Howell, J.
  Hinterlong M. Sherraden (Eds.), Productive
  aging Concepts and challenges. Baltimore, MD
  The Johns Hopkins University Press.
• United States Department of Labor. (2005).
  Employment status of the civilian
  noninstitutional population by age, sex, and
  race. Retrieved January 30, 2006, from
  http//www.bls.gov/cps/annual