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Productivity and age: Evidence from work teams at the assembly line

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  • Weiss, Matthias
  • Börsch-Supan, Axel

Abstract

We study the relation between workers’ age and their productivity in work teams, based on a new and unique data set that combines data on errors occurring in the production process of a large car manufacturer with detailed information on the personal characteristics of workers re-lated to the errors. We correct for non-random sample selection and the potential endogeneity of the age-composition in work teams. Our results suggest that productivity does not decline at least up to age 60. --

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Bibliographic Info

Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis with number 48719.

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Date of creation: 2011
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Handle: RePEc:zbw:vfsc11:48719

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Web page: http://www.socialpolitik.org/
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Keywords: Age-Productivity Profiles;

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  1. Thierry Lallemand & François Rycx, 2009. "Are young and old workers harmful for firm productivity?," DULBEA Working Papers, ULB -- Universite Libre de Bruxelles 09-02.RS, ULB -- Universite Libre de Bruxelles.
  2. 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.
  3. 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.
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  6. David A. Wise, 1989. "The Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise89-1.
  7. 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.
  8. 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, American Economic Association, vol. 89(2), pages 94-98, May.
  9. Fabrizio Castellucci & Giovanni Pica, 2009. "The Age-Productivity Gradient: Evidence from a Sample of F1 Drivers," CSEF Working Papers, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy 226, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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  11. Börsch-Supan, Axel & Düzgün, Ismail & Weiss, Matthias, 2005. "Altern und Produktivität: Zum Stand der Forschung," MEA discussion paper series, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy 05073, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  12. 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).
  13. Frank, Robert H. & Hutchens, Robert M., 1993. "Wages, seniority, and the demand for rising consumption profiles," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 21(3), pages 251-276, August.
  14. Francesco Daveri & Mika Maliranta, 2007. "Age, seniority and labour costs: lessons from the Finnish IT revolution," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 22, pages 117-175, 01.
  15. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, American Economic Association, vol. 71(4), pages 606-20, September.
  16. John Laitner & Dmitriy Stolyarov, 2005. "Technological Progress and Worker Productivity at Different Ages," Working Papers, University of Michigan, Michigan Retirement Research Center wp107, University of Michigan, Michigan Retirement Research Center.
  17. Judith K. Hellerstein & David Neumark, 1995. "Are Earnings Profiles Steeper Than Productivity Profiles? Evidence from Israeli Firm-Level Data," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 89-112.
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Cited by:
  1. Arntz, Melanie & Gregory, Terry, 2014. "What old stagers could teach us: Examining age complementarities in regional innovation systems," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 14-050, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Oliver Holtemöller & Maike Irrek & Birgit Schultz, 2012. "A Federal Long-run Projection Model for Germany," IWH Discussion Papers, Halle Institute for Economic Research 11, Halle Institute for Economic Research.
  3. Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers 2014-03, Faculty of Economic Sciences, University of Warsaw.
  4. James M. Poterba, 2014. "Retirement Security in an Aging Society," NBER Working Papers 19930, National Bureau of Economic Research, Inc.
  5. Spermann, Alexander, 2014. "Using Online Platforms for Competence Tests: A Component of the Demographic Policy of Germany," IZA Policy Papers, Institute for the Study of Labor (IZA) 83, Institute for the Study of Labor (IZA).
  6. Axel H. Boersch-Supan & Alexander Ludwig, 2010. "Old Europe ages: Reforms and Reform Backlashes," NBER Working Papers 15744, National Bureau of Economic Research, Inc.
  7. Marcin Bielecki & Karolina Goraus & Jan Hagemejer & Joanna Tyrowicz, 2014. "The Sooner The Better - The Welfare Effects of the Retirement Age Increase Under Various Pension Schemes," Working Papers 2014-12, Faculty of Economic Sciences, University of Warsaw.
  8. Beatrice Scheubel & Daniel Schunk & Joachim Winter, 2009. "Don't Raise the Retirement Age! An Experiment on Opposition to Pension Reforms and East-West Differences in Germany," CESifo Working Paper Series 2752, CESifo Group Munich.
  9. 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.
  10. Caliendo, Marco & Hogenacker, Jens, 2012. "The German Labor Market after the Great Recession: Successful Reforms and Future Challenges," IZA Discussion Papers 6810, Institute for the Study of Labor (IZA).
  11. 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.
  12. Jan Hagemejer & Krzysztof Makarski & Joanna Tyrowicz, 2013. "Efficiency of the pension reform: the welfare effects of various fiscal closures," Working Papers 2013-23, Faculty of Economic Sciences, University of Warsaw.
  13. Kronenberg, Kristin & Carree, Martin, 2010. "The effects of workforce composition, labor turnover, and the qualities of entering and exiting workers on productivity growth," MPRA Paper 25844, University Library of Munich, Germany.
  14. James M. Poterba, 2014. "Retirement Security in an Aging Population," American Economic Review, American Economic Association, American Economic Association, vol. 104(5), pages 1-30, May.
  15. Jan Hagemejer & Krzysztof Makarski & Joanna Tyrowicz, 2013. "Unprivatizing the Pension System: The Case of Poland," Working Papers 2013-26, Faculty of Economic Sciences, University of Warsaw.
  16. Spermann, Alexander, 2014. "Online-Portale für Kompetenztests – ein Baustein für die Demografiestrategie Deutschlands," IZA Standpunkte, Institute for the Study of Labor (IZA) 67, Institute for the Study of Labor (IZA).

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