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Workforce Composition And Firm Productivity: Evidence From Taiwan

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  • JIN‐TAN LIU
  • MENG‐WEN TSOU
  • PING WANG

Abstract

We study the relationship between workforce composition and firm productivity based on a new employee‐employer‐matched data set, using an array of workforce characteristics and three alternative measures of firm productivity. While firm age is not essential for the performance of firms, those of smaller size and those in the steel and transportation industries outperform others. Moreover, labor quality, particularly the middle‐aged with higher education, contributes significantly to firms' productivity. Furthermore, economic incentives and market competition both play important roles in the performance of firms. Finally, there is an employer‐size premium with larger firms paying higher wages and nonwage benefits. (JEL C33, D20, J30)

Suggested Citation

  • Jin‐Tan Liu & Meng‐Wen Tsou & Ping Wang, 2010. "Workforce Composition And Firm Productivity: Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1032-1047, October.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:4:p:1032-1047
    DOI: 10.1111/j.1465-7295.2009.00232.x
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    Cited by:

    1. Osman, Adam & Speer, Jamin D. & Weaver, Andrew, 2023. "Discrimination against Women in Hiring," IZA Discussion Papers 16598, Institute of Labor Economics (IZA).
    2. Christian Pfeifer & Joachim Wagner, 2012. "Age and gender composition of the workforce, productivity and profits: Evidence from a new type of data for German enterprises," Working Paper Series in Economics 232, University of Lüneburg, Institute of Economics.
    3. Christian Pfeifer & Joachim Wagner, 2014. "Age and gender effects of workforce composition on productivity and profits: Evidence from a new type of data for German enterprises," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(1), March.
    4. Tsou, Meng-Wen & Yang, Chih-Hai, 2019. "Does gender structure affect firm productivity? Evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 19-36.
    5. Ching-Fu Chang & Cherng-Shiun Lin, 2017. "The Role of Human Capital in Manufacturing Plant Growth: Evidence from Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 554-584, October.
    6. Chang, Ching-Fu & Wang, Ping & Liu, Jin-Tan, 2016. "Knowledge spillovers, human capital and productivity," Journal of Macroeconomics, Elsevier, vol. 47(PB), pages 214-232.
    7. Pål Børing, 2014. "The Impact Of Manufacturing Firms’ Use Of Academic Workers On Their Productivity Level," Bulletin of Economic Research, Wiley Blackwell, vol. 66(2), pages 156-172, April.
    8. 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 Management.

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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D20 - Microeconomics - - Production and Organizations - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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