The Impact of Workforce Age Heterogeneity on Company Productivity
AbstractWe analyse how the age structure of a company’s workforce affects company performance using a linked employer employee panel dataset. With demographic changes at hand, this is of utmost importance for firms and organisations. Focussing on the organizational, not the individual level, we examine the effect of changes in age heterogeneity of a company’s workforce on company productivity. Incorporating theoretical insights and empirical results on aging and age diversity from multiple and very diverse disciplines, we conduct a cost-benefit analysis to evaluate how changes in age heterogeneity may affect organizational performance. Our dataset contains more than 18,000 German firms and 2 million employees over 10 years. We find significant effects of age heterogeneity on firm productivity, and that these effects are particularly moderated by type of tasks. There are positive productivity effects of increasing age heterogeneity, but only for companies and workforces conducting innovative or creative tasks.
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 University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0078.
Length: 44 pages
Date of creation: Feb 2008
Date of revision: Sep 2009
age heterogeneity; demographic change; organizational performance; productivity effects;
Find related papers by JEL classification:
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
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.:
- Susanna Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006.
"Skill dispersion and firm productivity; an analysis with employer-employee matched data,"
Temi di discussione (Economic working papers)
577, Bank of Italy, Economic Research and International Relations Area.
- Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 247-285, 04.
- S. Iranzo & F. Schivardi & E. Tosetti, 2006. "Skill dispersion and firm productivity: an analysis with employer-employee matched data," Working Paper CRENoS 200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers.
- Francesco Daveri & Mika Maliranta, 2007. "Age, seniority and labour costs: lessons from the Finnish IT revolution," Economic Policy, CEPR & CES & MSH, vol. 22, pages 117-175, 01.
- Gartner, Hermann, 2005. "The imputation of wages above the contribution limit with the German IAB employment sample," FDZ Methodenreport 200502_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Christian Grund & Niels Westergaard-Nielsen, 2008.
"Age structure of the workforce and firm performance,"
International Journal of Manpower,
Emerald Group Publishing, vol. 29(5), pages 410-422, September.
- 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).
- Börsch-Supan, Axel & Düzgün, Ismail & Weiss, Matthias, 2005. "Altern und Produktivität: Zum Stand der Forschung," MEA discussion paper series 05073, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Gary Charness & Marie-Claire Villeval, 2007.
"Cooperation, Competition, and Risk Attitudes: An Intergenerational Field and Laboratory Experiment,"
- Charness, Gary & Villeval, Marie Claire, 2007. "Cooperation, Competition, and Risk Attitudes: An Intergenerational Field and Laboratory Experiment," IZA Discussion Papers 2574, Institute for the Study of Labor (IZA).
- Stock, Ruth, 2004. "Drivers of Team Performance: What Do We Know and What Have We Still to Learn?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60487, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Axel Börsch-Supan, 2003. "Labor Market Effects of Population Aging," LABOUR, CEIS, vol. 17(SpecialIs), pages 5-44, 08.
- Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003.
"German works councils in the production process,"
21, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Ruth Stock, 2004. "Drivers Of Team Performance: What Do We Know And What Have We Still To Learn?," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 56(3), pages 274-306, July.
- Edward P. Lazear, 1998.
"Globalization and the Market for Teammates,"
NBER Working Papers
6579, National Bureau of Economic Research, Inc.
- Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Haltiwanger, John C. & Lane, Julia I. & Spletzer, James R., 2007.
"Wages, productivity, and the dynamic interaction of businesses and workers,"
Elsevier, vol. 14(3), pages 575-602, June.
- John Haltiwanger & Julia Lane & James Spletzer, 2000. "Wages, Productivity, and the Dynamic Interaction of Businesses and Workers," NBER Working Papers 7994, National Bureau of Economic Research, Inc.
- Stock, Ruth, 2004. "Drivers of Team Performance: What Do We Know and What Have We Still to Learn?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35551, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Sean Nicholson & Mark V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek & Marc L. Berger, 2006.
"Measuring the effects of work loss on productivity with team production,"
John Wiley & Sons, Ltd., vol. 15(2), pages 111-123.
- Sean Nicholson & Marc V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek, 2004. "Measuring the Effects of Workloss on Productivity With Team Production," NBER Working Papers 10632, National Bureau of Economic Research, Inc.
- Göbel, Christian & Zwick, Thomas, 2010. "Which personnel measures are effective in increasing productivity of old workers?," ZEW Discussion Papers 10-069, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT).
If references are entirely missing, you can add them using this form.