3.2. Demographics
In the model, 1/po implies an individual's average years of
working. In Thailand, the official working ages are from 15 to 59
years, and the working population accounts for 67% of the total
population in 2006. We also estimate the average years of working
in the HSES household samples. First, we estimate the initial
working age by calculating the average (expected) age of initial
labor market participation in the age group of 15e29 years. Second,
we estimate the average retirement age by calculating the average
in the age group of 50e64 years. According to the 2005 HSES data,
the expected initial age of working is 17.88 years, and the average
retirement age is 61.89 years. Although these ages slightly differ
from the legal regulation, the average years of working is roughly
the same. Therefore, we use 45 years as the average years of
working for young agents, and we set the retirement probability po
at 1/45.
The old-age dependency ratio was 13% in Thailand in 2005. We
choose the death probability pd such that the old-age dependency
ratio in the benchmark model economy (i.e., the oldeyoung ratio
po/pd) matches 13%.
3.2. DemographicsIn the model, 1/po implies an individual's average years ofworking. In Thailand, the official working ages are from 15 to 59years, and the working population accounts for 67% of the totalpopulation in 2006. We also estimate the average years of workingin the HSES household samples. First, we estimate the initialworking age by calculating the average (expected) age of initiallabor market participation in the age group of 15e29 years. Second,we estimate the average retirement age by calculating the averagein the age group of 50e64 years. According to the 2005 HSES data,the expected initial age of working is 17.88 years, and the averageretirement age is 61.89 years. Although these ages slightly differfrom the legal regulation, the average years of working is roughlythe same. Therefore, we use 45 years as the average years ofworking for young agents, and we set the retirement probability poat 1/45.The old-age dependency ratio was 13% in Thailand in 2005. Wechoose the death probability pd such that the old-age dependencyratio in the benchmark model economy (i.e., the oldeyoung ratiopo/pd) matches 13%.
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