Aging, Labor Turnover and Firm Performance
AbstractWe study whether older workers are costly to firms. Our estimation equations are derived from a variant of the decomposition methods frequently used for measuring micro-level sources of industry productivity growth. By using comprehensive linked employer-employee data from the Finnish business sector, we study the productivity and wage effects, and hence the profitability effects, of hiring and separation of younger and older workers. The evidence shows that separations of older workers are profitable to firms, especially in the manufacturing ICT-industries. Robustness checks include the use of regional labor supply and other variables as instruments for the potential endogeneity of the labor flows.
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 The Research Institute of the Finnish Economy in its series Discussion Papers with number 1092.
Length: 40 pages
Date of creation: 2007
Date of revision:
Find related papers by JEL classification:
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-05-12 (Economics of Ageing)
- NEP-ALL-2007-05-12 (All new papers)
- NEP-BEC-2007-05-12 (Business Economics)
- NEP-EFF-2007-05-12 (Efficiency & Productivity)
- NEP-LAB-2007-05-12 (Labour Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2013.
"Ageing, productivity and wages in Austria,"
Elsevier, vol. 22(C), pages 5-15.
- Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2011. "Ageing, productivity and wages in Austria," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 03/2011, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
- Weiss, Matthias & Börsch-Supan, Axel, 2011.
"Productivity and age: Evidence from work teams at the assembly line,"
Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis
48719, Verein für Socialpolitik / German Economic Association.
- Börsch-Supan, Axel & Weiss, Matthias, 2011. "Productivity and age: Evidence from work teams at the assembly line," MEA discussion paper series 07148, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Ours, J.C. van, 2009. "Will You still Need Me - When I'm 64?," Discussion Paper 2009-51, Tilburg University, Center for Economic Research.
- Maliranta, Mika & Mohnen, Pierre & Rouvinen, Petri, 2008.
"Is Inter-Firm Labor Mobility a Channel of Knowledge spillovers? Evidence from a Linked Employer-Employee Panel,"
UNU-MERIT Working Paper Series
005, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Mika Maliranta & Pierre Mohnen & Petri Rouvinen, 2009. "Is inter-firm labor mobility a channel of knowledge spillovers? Evidence from a linked employer--employee panel," Industrial and Corporate Change, Oxford University Press, vol. 18(6), pages 1161-1191, December.
- Maliranta, Mika & Mohnen, Pierre & Rouvinen, Petri, 2008. "Is Inter-firm Labor Mobility a Channel of Knowledge Spillovers? Evidence from a Linked Employer-Employee Panel," Discussion Papers 1116, The Research Institute of the Finnish Economy.
- Frosch, Katharina & Göbel, Christian & Zwick, Thomas, 2011.
"Separating wheat and chaff: age-specific staffing strategies and innovative performance at the firm level,"
ZEW Discussion Papers
11-047, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Frosch, Katharina & Göbel, Christian & Zwick, Thomas, 2011. "Separating wheat and chaff: age-specific staffing strategies and innovative performance at the firm level," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(4), pages 321-338.
- Stoeldraijer, Lenny & van Ours, Jan C., 2010. "Age, wage and productivity," CEPR Discussion Papers 7713, C.E.P.R. Discussion Papers.
- Katharina Frosch, 2009. "Do only new brooms sweep clean? A review on workforce age and innovation," MPIDR Working Papers WP-2009-005, Max Planck Institute for Demographic Research, Rostock, Germany.
- van Ours, Jan C. & Stoeldraijer, Lenny, 2010.
"Age, Wage and Productivity,"
IZA Discussion Papers
4765, Institute for the Study of Labor (IZA).
- Mika Maliranta & Satu Nurmi & Hanna Virtanen, 2010. "Resources in vocational education and post-schooling outcomes," International Journal of Manpower, Emerald Group Publishing, vol. 31(5), pages 520-544, September.
- Jan Ours, 2009.
"Will You Still Need Me: When I’m 64?,"
Springer, vol. 157(4), pages 441-460, December.
- Schimke, Antje, 2012. "Entrepreneurial aging and employment growth in the context of extreme growth events," Working Paper Series in Economics 39, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
- Jan Ours & Lenny Stoeldraijer, 2011. "Age, Wage and Productivity in Dutch Manufacturing," De Economist, Springer, vol. 159(2), pages 113-137, June.
- Mika Maliranta & Satu Nurmi & Hanna Virtanen, 2008. "It takes three to tango in employment: Matching vocational education organisations, students and companies in labour market," Economics of Education Working Paper Series 0022, University of Zurich, Institute for Strategy and Business Economics (ISU).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kaija Hyvönen-Rajecki).
If references are entirely missing, you can add them using this form.