Age-Biased Technological and Organizational Change: Firm-Level Evidence and Management Implications
AbstractThis paper examines the question, whether the growing use of new technologies and decentralized forms of work organization affects the age structure of workforces within firms. The initial idea behind this relationship is that technological and organizational change may not only be skill-biased, but also age-biased. Based on human capital theoretical explanations that mainly focus on skill obsolescence in association with the need to acquire new skills, the hypothesis of an age-biased technological and organizational change (ABTOC) is derived and tested econometrically using German firm-level data. The empirical results show that the adoption of technological and organizational innovations decreases the firms’ demand for older workers and increases the demand for younger workers. Hence, ABTOC is found to be at the expense of older workers. Since ABTOC does not fit to the current development in terms of age-specific labor supply, this paper also suggests human resource management practices that encourage firms to combine the use of new technologies and organizational forms with an ageing workforce.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2007/05.
Date of creation: 2007
Date of revision:
Ageing workforces; new technologies; decentralized work organization; skill obsolescence; skill adaptation; productivity-wage-differentials;
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Van Reenen, John & Caroli, Eve, 2001.
"Skill-Biased Organizational Change? Evidence from a panel of British and French establishments,"
Economics Papers from University Paris Dauphine
123456789/10093, Paris Dauphine University.
- Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence From A Panel Of British And French Establishments," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1449-1492, November.
- Caroli, Eve & Van Reenen, John, 1999. "Skill biased organizational change? Evidence from a panel of British and French establishments," CEPREMAP Working Papers (Couverture Orange) 9917, CEPREMAP.
- Bartel, Ann P & Sicherman, Nachum, 1993. "Technological Change and Retirement Decisions of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 162-83, January.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999.
"Inequality and economic growth: the perspective of the new growth theories,"
CEPREMAP Working Papers (Couverture Orange)
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
- Avner Ahituv & Joseph Zeira, 2011.
"Technical Progress and Early Retirement,"
Royal Economic Society, vol. 121(551), pages 171-193, March.
- Ahituv, Avner & Zeira, Joseph, 2002. "Technical Progress and Early Retirement," Working Paper Series rwp02-007, Harvard University, John F. Kennedy School of Government.
- Ahituv, Avner & Zeira, Joseph, 2000. "Technical Progress and Early Retirement," CEPR Discussion Papers 2614, C.E.P.R. Discussion Papers.
- Avner Ahituv & Joeph Zeira, . "Technical Progress and Early Retirement," Working Papers 0801, University of Crete, Department of Economics.
- Bond, Stephen & Van Reenen, John, 2007. "Microeconometric Models of Investment and Employment," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 65 Elsevier.
- Scott J. Adams, 2002. "Passed Over for Promotion Because of Age: An Empirical Analysis of the Consequences," Journal of Labor Research, Transaction Publishers, vol. 23(3), pages 447-461, July.
- Patrick Aubert & Eve Caroli & Muriel Roger, 2006.
"New technologies, organisation and age: firm-level evidence,"
Royal Economic Society, vol. 116(509), pages F73-F93, 02.
- Roger, Muriel & Aubert, Patrick & Caroli, Eve, 2006. "New technologies, organisation and age: firm-level evidence," Economics Papers from University Paris Dauphine 123456789/10051, Paris Dauphine University.
- Bruce A. Weinberg, 2000. "Computer use and the demand for female workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(2), pages 290-308, January.
- Peracchi, Franco & Welch, Finis, 1994. "Trends in Labor Force Transitions of Older Men and Women," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 210-42, April.
- Pablo Antolín & Stefano Scarpetta, 1998. "Microeconometric Analysis of the Retirement Decision: Germany," OECD Economics Department Working Papers 204, OECD Publishing.
- Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
- Julia I. Lane & John C. Haltiwanger & James Spletzer, 1999. "Productivity Differences across Employers: The Roles of Employer Size, Age, and Human Capital," American Economic Review, American Economic Association, vol. 89(2), pages 94-98, May.
- Leora Friedberg, 2003.
"The impact of technological change on older workers: Evidence from data on computer use,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 56(3), pages 511-529, April.
- Leora Friedberg, 2001. "The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use," NBER Working Papers 8297, National Bureau of Economic Research, Inc.
- Daniel Rodriguez & Madeline Zavodny, 2003. "Changes in the age and education profile of displaced workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 498-510, April.
- Bruno Crépon & Nicolas Deniau & Sébastien Pérez-Duarte, 2003. "Wages, Productivity and Worker Characteristics : A French Perspective," Working Papers 2003-04, Centre de Recherche en Economie et Statistique.
- Falk, Martin & Seim, Katja, 1999. "Workers' skill level and information technology: evidence from German service firms," ZEW Discussion Papers 99-14, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Uschi Backes-Gellner & Stephan Veen, 2007. "Aging Workforces and Challenges to Human Resource Management in German Firms," Working Papers 0079, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Jenny Meyer, 2011. "Workforce age and technology adoption in small and medium-sized service firms," Small Business Economics, Springer, vol. 37(3), pages 305-324, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.