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Will You Still Need Me – When I'm 64?

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  • van Ours, Jan C.

    ()
    (Tilburg University)

Abstract

For various reasons the relationship between age and productivity is a matter of policy concern. I present new empirical research showing how productivity is affected by age. I study age effects at the individual level by analyzing data on running and publishing in economic journals. Furthermore I present empirical evidence at the firm level on the relationship between age, wage and productivity. In particular I address the potential wage-productivity gap that might occur at higher ages. I conclude that the productivity of older workers indeed decreases with their age. Nevertheless, the decline is limited. Furthermore, I find no evidence of a pay-productivity at higher ages.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4264.

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Length: 28 pages
Date of creation: Jun 2009
Date of revision:
Publication status: published in: De Economist, 2009, 157(4), 441-460
Handle: RePEc:iza:izadps:dp4264

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Keywords: productivity; matched worker-firm data; age;

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References

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  1. Oswald, Andrew J., 2006. "An Examination of the Reliability of Prestigious Scholarly Journals: Evidence and Implications for Decision-makers," IZA Discussion Papers 2070, Institute for the Study of Labor (IZA).
  2. Benoit Dostie, 2011. "Wages, Productivity and Aging," De Economist, Springer, Springer, vol. 159(2), pages 139-158, June.
  3. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(6), pages 1261-84, December.
  4. Jan Ours & Frederic Vermeulen, 2007. "Ranking Dutch Economists," De Economist, Springer, Springer, vol. 155(4), pages 469-487, December.
  5. Fair, Ray C, 1994. "How Fast Do Old Men Slow Down?," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 103-18, February.
  6. Thierry Lallemand & François Rycx, 2009. "Are Older Workers Harmful for Firm Productivity?," De Economist, Springer, Springer, vol. 157(3), pages 273-292, September.
  7. Weiss, Yoram, 1985. "The Effect of Labor Unions on Investment in Training: A Dynamic Model," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(5), pages 994-1007, October.
  8. Sharon M. Oster & Daniel S. Hamermesh, 1998. "Aging And Productivity Among Economists," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 154-156, February.
  9. Loewenstein, George F & Sicherman, Nachum, 1991. "Do Workers Prefer Increasing Wage Profiles?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(1), pages 67-84, January.
  10. Pantelis Kalaitzidakis & Theofanis P Mamuneas & Thanasis Stengos, 2001. "Rankings of Academic Journals and Institutions in Economics," Discussion Papers in Economics 01/8, Department of Economics, University of Leicester.
  11. Pekka Ilmakunnas & Mika Maliranta, 2005. "Technology, Labour Characteristics and Wage-productivity Gaps," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(5), pages 623-645, October.
  12. Ours, J.C. van & Stoeldraijer, L., 2010. "Age, Wage and Productivity," Discussion Paper, Tilburg University, Center for Economic Research 2010-12, Tilburg University, Center for Economic Research.
  13. van Ours, Jan C. & Stoeldraijer, Lenny, 2010. "Age, Wage and Productivity," IZA Discussion Papers 4765, Institute for the Study of Labor (IZA).
  14. Malmberg, Bo & Lindh, Thomas & Halvarsson, Max, 2005. "Productivity consequences of workforce ageing - Stagnation or a Horndal effect?," Arbetsrapport, Institute for Futures Studies 2005:17, Institute for Futures Studies.
  15. Stoeldraijer, Lenny & van Ours, Jan C., 2010. "Age, wage and productivity," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7713, C.E.P.R. Discussion Papers.
  16. Ilmakunnas, Pekka & Maliranta, Mika, 2007. "Aging, Labor Turnover and Firm Performance," Discussion Papers, The Research Institute of the Finnish Economy 1092, The Research Institute of the Finnish Economy.
  17. J. Peter Neary & James A. Mirrlees & Jean Tirole, 2003. "Evaluating Economics Research in Europe: An Introduction," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(6), pages 1239-1249, December.
  18. Vegard Skirbekk, 2003. "Age and individual productivity: a literature survey," MPIDR Working Papers WP-2003-028, Max Planck Institute for Demographic Research, Rostock, Germany.
  19. van Ours, J. C. & Ridder, G., 2003. "Fast track or failure: a study of the graduation and dropout rates of Ph D students in economics," Economics of Education Review, Elsevier, Elsevier, vol. 22(2), pages 157-166, April.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Age & productivity
    by chris dillow in Stumbling and Mumbling on 2009-07-14 08:53:42
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Cited by:
  1. Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2013. "Ageing, productivity and wages in Austria," Labour Economics, Elsevier, Elsevier, vol. 22(C), pages 5-15.
  2. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
  3. Nicole Bosch & Bas ter Weel, 2013. "Labour-Market Outcomes of Older Workers in the Netherlands: Measuring Job Prospects Using the Occupational Age Structure," De Economist, Springer, Springer, vol. 161(2), pages 199-218, June.
  4. Jan C. van Ours & Lenny Stoeldraijer, 2010. "Age, Wage and Productivity," CESifo Working Paper Series 2965, CESifo Group Munich.
  5. Göbel, Christian & Zwick, Thomas, 2013. "Are personnel measures effective in increasing productivity of old workers?," Labour Economics, Elsevier, Elsevier, vol. 22(C), pages 80-93.

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