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Ageing, productivity and wages in Austria: Evidence from a matched employer-employee data set at the sector level

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  • Mahlberg, Bernhard
  • Freund, Inga
  • Prskawetz, Alexia

Abstract

In this paper we analyse the link between the age structure of the labour force and average labour productivity at the intermediate level of economic sectors. The analysis is based on a panel data set ranging over six years (2002-2007) and covers the sectors of mining, manufacturing and market oriented services in the Austrian economy. Our results exhibit a positive correlation of the share of older employees and productivity, while we cannot find any evidence for a significant relationship of the share of younger employees and productivity. Moreover, the estimated age-wage pattern does not hint at an over-payment of older employees. --

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Bibliographic Info

Paper provided by Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON) in its series ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy with number 02/2011.

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Date of creation: 2011
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Handle: RePEc:zbw:tuweco:022011

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Web page: http://www.econ.tuwien.ac.at/
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Keywords: ageing workforce; production function; age-productivity profile; age-wage pattern;

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  1. Göbel, Christian & Zwick, Thomas, 2009. "Age and productivity: evidence from linked employer employee data," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 09-020, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2009. "Characteristics of exporting and non-exporting firms in Austria," FIW Research Reports series, FIW II-001, FIW.
  3. Göbel, Christian & Zwick, Thomas, 2010. "Which personnel measures are effective in increasing productivity of old workers?," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 10-069, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Stephan Brunow & Georg Hirte, 2009. "The age pattern of human capital and regional productivity: A spatial econometric study on german regions," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 799-823, November.
  5. 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), Bank of Italy, Economic Research and International Relations Area 577, Bank of Italy, Economic Research and International Relations Area.
  6. Benoit Dostie, 2006. "Wages, Productivity and Aging," Cahiers de recherche 06-15, HEC Montréal, Institut d'économie appliquée.
  7. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, StataCorp LP, vol. 3(2), pages 168-177, June.
  8. 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.
  9. Hellerstein, Judith K & Neumark, David, 1999. "Sex, Wages, and Productivity: An Empirical Analysis of Israeli Firm-Level Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 95-123, February.
  10. Thomas Zwick, 2005. "Continuing Vocational Training Forms and Establishment Productivity in Germany," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 6(2), pages 155-184, 05.
  11. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
  12. repec:fth:michin:445 is not listed on IDEAS
  13. Cameron, G., 2000. "R&D and Growth at the Industry Level," Economics Papers 2000-w4, Economics Group, Nuffield College, University of Oxford.
  14. Jianmin Tang & Carolyn MacLeod, 2006. "Labour force ageing and productivity performance in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 39(2), pages 582-603, May.
  15. Thomas Lindh & Bo Malmberg, 1999. "Age structure effects and growth in the OECD, 1950-1990," Journal of Population Economics, Springer, Springer, vol. 12(3), pages 431-449.
  16. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  17. Patrick Aubert & Bruno Crépon, 2003. "La productivité des salariés âgés : une tentative d'estimation," Économie et Statistique, Programme National Persée, Programme National Persée, vol. 368(1), pages 95-119.
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