Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp09020.pdf
Nontechnical SummaryIn most Western, industrialised countries the workforce is ageing rapidly. Medical research on the relationship between individual performance and age suggests that an ageing workforce could have severe negative consequences on the economic performance of the affected countries. In order to assess the possible consequences of an ageing workforce, this paper measures the impact of changes in the age structure of establishments on productivity using representative linked employeremployee panel data. We take into account that the levels as well as the changes in the age structure of establishments and their production are likely to be determined simultaneously. We apply appropriate statistical methods and test their validity rigorously. In addition, we include several crucial establishment and workforce characteristics that are correlated with productivity and age shares. To summarise, our estimates suggest that some of the previeous studies underestimates the impact of older age groups on productivity. Most of the existing studies suggest a decline in productivity beyond the age of 40. However, we find that establishment productivity increases with the share of employees until the age group 50-55 years and decreases only slightly afterwards. In addition, the inclusion of additional establishment and employee characteristics has a remarkable impact on the shape of the age productivity pattern. Based on our results, we do not find an indication that the ageing workforce will necessarily lead to a decline of the welfare of the industrialised economies because on average the age productivity profile is essentially flat. Finally, our estimates suggest that there is considerable variation in the age productivity profile amongst the establishments in the economy. This is a sign of big differences in the impact of age on the productivity amongst the establishments.
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Age and Productivity -Evidence from LinkedEmployer Employee Data
AbstractIn most Western, industrialised countries the workforce is ageing rapidly. In order to assess the possible consequences of an ageing workforce, this paper measures the impact of changes in the age structure of establishments on productivity using representative linked employer-employee panel data. We take into account that the levels as well as the changes in the age structure of establishments an...