Age structure of the workforce and firm performance
AbstractPurpose – Given the ongoing demographic change in European countries, this paper aims to explore empirically the link between age structures of employees in firms and firm performance. Design/methodology/approach – Based on theoretical considerations, the paper examines the link between both the average age and the standard deviation of employees' age and firms' value added per employee. Linked employer employee data of all private-sector firms in Denmark with at least 20 employees is used. Findings – A pyramidal or inverse U-shaped interrelation is found between mean age and standard deviation of age and value added per employee, respectively. Research limitations/implications – It would be interesting to determine whether the results hold for different countries with other institutional environments. Originality/value – This is the first paper to examine the link between corporate age structures and firm performance for a whole country. The paper gives insights for both academic scholars and practitioners, who may take The results into account in formulating an efficient personnel policy.
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Bibliographic InfoArticle provided by Emerald Group Publishing in its journal International Journal of Manpower.
Volume (Year): 29 (2008)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Other versions of this item:
- Grund, Christian & Westergård-Nielsen, Niels, 2005. "Age Structure of the Workforce and Firm Performance," Working Papers 05-10, University of Aarhus, Aarhus School of Business, Department of Economics.
- Grund, Christian & Westergård-Nielsen, Niels C., 2005. "Age Structure of the Workforce and Firm Performance," IZA Discussion Papers 1816, Institute for the Study of Labor (IZA).
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management
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