Research on World Agricultural Economy

Effects of Aging Society on Labor Productivity: A Case Study of Thailand’s Longan Production

Chonrada Nunti

Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand

Kewalin Somboon

Faculty of Economics, Maejo University, Chiang Mai 50290, Thailand

DOI: https://doi.org/10.36956/rwae.v6i1.1564

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Abstract

The objectives of this research were to examine the effects of an aging society on labor productivity within the Thai longan production sector, as well as to assess the technical efficiency associated with this demographic shift. Data were collected from a sample of 400 longan farmers, employing the Ordinary Least Squares (OLS) regression to investigate the relationship between the aging population and labor productivity in longan cultivation. Additionally, the Stochastic Frontier Model (SFM) was utilized to evaluate technical efficiency and its correlation with productivity in the context of an aging society. The findings suggest that the predominant segment of longan production in Thailand is supported by a workforce characterized by an average age of approximately 57 years. By the year 2025, the impact of Thailand’s aging population may result in a significant number of longan farmers ceasing production due to health-related issues and diminished selling prices. Thus, projections indicate a potential decline in both the yield and the area cultivated for longan. Moreover, the transition into an aging society is likely to adversely affect labor productivity in agricultural production. Despite the current high level of technical efficiency in longan production, the aging of farmers is expected to lead to a reduction in overall productivity.

Keywords: Aging Society; Longan Production; Technical Efficiency; Labor Productivity

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