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The Adoption of New Technologies and the Age Structure of the Workforce

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Author Info
Meyer, Jenny
Abstract

This paper provides firm-level evidence for the relationship between the age structure of the workforce and the adoption of new or significantly improved technologies in service sector firms. Furthermore, it closes a research gap by analyzing the joint impact of the age of the workforce and the enhancement of teamwork on the probability of adopting new technologies. The empirical analyses, that are based on a data set of 356 German firms from the knowledge-intensive services and ICT services sector, reveal three findings: Firstly, firms with a higher share of younger employees are more likely to adopt new technologies and the older the workforce is, the less likely is the adoption of new technologies. Secondly, the distribution of the age of the workforce has no significant impact on the probability of adopting new technologies. And thirdly, firms which enhanced their teamwork and have a higher share of younger workers are less likely to adopt new technologies whereas firms that enhanced their teamwork and have a higher share of older employees are more likely to adopt new technologies. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-045.

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Date of creation: 2008
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Handle: RePEc:zbw:zewdip:7355

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Related research
Keywords: age structure of the workforce; adoption of new technologies; ICT intensive services;

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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  1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Rouvinen, Petri, 2002. "Characteristics of Product and Process Innovators: Some Evidence from the Finnish Innovation Survey," Applied Economics Letters, Taylor and Francis Journals, vol. 9(9), pages 575-80, July. [Downloadable!] (restricted)
  3. Leora Friedberg, 2003. "The impact of technological change on older workers: Evidence from data on computer use," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(3), pages 511-529, April. [Downloadable!] (restricted)
  4. Elisabeth Mueller & Alexandra Spitz-Oener, 2006. "Managerial Ownership and Company Performance in German Small and Medium-Sized Private Enterprises," German Economic Review, Blackwell Publishing, vol. 7, pages 233-247, 05. [Downloadable!] (restricted)
  5. Patrick Aubert & Eve Caroli & Muriel Roger, 2006. "New technologies, organisation and age: firm-level evidence," Economic Journal, Royal Economic Society, vol. 116(509), pages F73-F93, 02. [Downloadable!] (restricted)
  6. Glenn MacDonald & Michael Weisbach, 2001. "The Economics of Has-Beens," NBER Working Papers 8464, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Bertschek, Irene & Kaiser, Ulrich, 2001. "Productivity effects of organizational change : microeconometric evidence," ZEW Discussion Papers 01-32, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
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  9. Borghans,Lex & Weel,Bas,ter, 2002. "Do Older Workers Have More Trouble Using a Computer Than Younger Workers?," Research Memoranda 003, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
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  11. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April. [Downloadable!]
  12. Elizabeth Webster, 2004. "Firms' decisions to innovate and innovation routines," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(8), pages 733-745, December. [Downloadable!] (restricted)
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  13. Gu, Wulong & Gera, Surendra, 2004. "The Effect of Organizational Innovation and Information Technology on Firm Performance," The Canadian Economy in Transition 2004007e, Statistics Canada, Economic Analysis Division. [Downloadable!]
  14. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
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