Ageing, productivity and wages in Austria
Current demographic developments in industrialized countries and their consequences for workforce ageing challenge the sustainability of intergenerational transfers and economic growth. A shrinking share of the young workforce will have to support a growing share of elderly, non-working people. Therefore, the productivity of the workforce is central to a sustainable economic future. Using a new matched employer–employee panel dataset for Austrian firms for the period 2002–2005, we study the relationship between the age structure of employees, labour productivity and wages. These data allow us to account, simultaneously, for both socio-demographic characteristics of employees and firm heterogeneity, in order to explain labour productivity and earnings. Our results indicate that firm productivity is not negatively related to the share of older employees it employs. We also find no evidence for overpayment of older employees. Our results do not show any association between wages and the share of older employees. Furthermore, we find a negative relationship between the share of young employees and labour productivity as well as wages, which is more prevalent in the industry and construction sector.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jan Ours, 2009.
"Will You Still Need Me: When I’m 64?,"
Springer, vol. 157(4), pages 441-460, December.
- 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, vol. 89(2), pages 94-98, May.
- Ana Cardoso & Paulo Guimarães & José Varejão, 2011.
"Are Older Workers Worthy of Their Pay? An Empirical Investigation of Age-Productivity and Age-Wage Nexuses,"
Springer, vol. 159(2), pages 95-111, June.
- Cardoso, Ana Rute & Guimaraes, Paulo & Varejão, José, 2010. "Are Older Workers Worthy of Their Pay? An Empirical Investigation of Age-Productivity and Age-Wage Nexuses," IZA Discussion Papers 5121, Institute for the Study of Labor (IZA).
- Benoit Dostie, 2006.
"Wages, Productivity and Aging,"
Cahiers de recherche
- Dostie, Benoit, 2006. "Wages, Productivity and Aging," IZA Discussion Papers 2496, Institute for the Study of Labor (IZA).
- Benoit Dostie, 2006. "Wages, Productivity and Aging," Cahiers de recherche 06-15, HEC Montréal, Institut d'économie appliquée.
- Benoit Dostie, 2007. "Wages, Productivity and Aging," CIRANO Working Papers 2007s-02, CIRANO.
- Thierry Lallemand & François Rycx, 2009. "Are Older Workers Harmful for Firm Productivity?," De Economist, Springer, vol. 157(3), pages 273-292, September.
- Hellerstein, Judith K & Neumark, David & Troske, Kenneth R, 1999.
"Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(3), pages 409-46, July.
- Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1996. "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations," NBER Working Papers 5626, National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Harhoff, Dietmar, 1994.
"R&D and productivity in German manufacturing firms,"
ZEW Discussion Papers
94-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Dietmar Harhoff, 1998. "R&D and Productivity in German Manufacturing Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 29-50.
- James L. Medoff & Katharine G. Abraham, 1980.
"Experience, Performance, and Earnings,"
NBER Working Papers
0278, National Bureau of Economic Research, Inc.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Göbel, Christian & Zwick, Thomas, 2009. "Age and productivity: evidence from linked employer employee data," ZEW Discussion Papers 09-020, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
- Abowd, John M. & Kramarz, Francis, 1999. "Econometric analyses of linked employer-employee data," Labour Economics, Elsevier, vol. 6(1), pages 53-74, March.
- BÃ¶rsch-Supan, Axel & DÃ¼zgÃ¼n, Ismail & Weiss, Matthias, 2005. "Altern und ProduktivitÃ¤t: Zum Stand der Forschung," MEA discussion paper series 05073, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- van Ours, Jan C. & Stoeldraijer, Lenny, 2010.
"Age, Wage and Productivity,"
IZA Discussion Papers
4765, Institute for the Study of Labor (IZA).
- Patrick Aubert & Bruno Crépon, 2003. "La productivité des salariés âgés : une tentative d'estimation," Économie et Statistique, Programme National Persée, vol. 368(1), pages 95-119.
- Alexia Prskawetz & Thomas Fent, 2007. "Workforce Ageing And The Substitution Of Labour: The Role Of Supply And Demand Of Labour In Austria," Metroeconomica, Wiley Blackwell, vol. 58(1), pages 95-126, 02.
- Ilmakunnas, Pekka & Maliranta, Mika, 2007. "Aging, Labor Turnover and Firm Performance," Discussion Papers 1092, The Research Institute of the Finnish Economy.
- 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.
- Freund, Inga & Mahlberg, Bernhard & Prskawetz, Alexia, 2011.
"A matched employer-employee panel data set for Austria: 2002 - 2005,"
ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy
01/2011, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
- Inga Freund & Bernhard Mahlberg & Alexia Prskawetz, 2012. "A Matched Employer-Employee Panel Data Set for Austria: 2002-2005," Working Paper Series of the German Council for Social and Economic Data 206, German Council for Social and Economic Data (RatSWD).
- Jan Ours & Lenny Stoeldraijer, 2011. "Age, Wage and Productivity in Dutch Manufacturing," De Economist, Springer, vol. 159(2), pages 113-137, June.
- Stoeldraijer, Lenny & van Ours, Jan C, 2010. "Age, wage and productivity," CEPR Discussion Papers 7713, C.E.P.R. Discussion Papers.
- Anna Cristina D'Addio & Mark Keese & Edward Whitehouse, 2010. "Population ageing and labour markets," Oxford Review of Economic Policy, Oxford University Press, vol. 26(4), pages 613-635, Winter.
- Hamermesh, Daniel, 2008.
"Fun with matched firm-employee data: Progress and road maps,"
Elsevier, vol. 15(4), pages 662-672, August.
- Hamermesh, Daniel S., 2007. "Fun with Matched Firm-Employee Data: Progress and Road Maps," IZA Discussion Papers 2580, Institute for the Study of Labor (IZA).
- 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, vol. 40(1), pages 95-123, February.
- Hellerstein, J-K & Neumark, D, 1995. "Sex, Wages, and Productivity : an Empirical Analysis of Israeli, Firm-Level Data," Papers 9501, Michigan State - Econometrics and Economic Theory.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Alexia Prskawetz & Bernhard Mahlberg & Vegard Skirbekk, 2007. "Firm Productivity, Work-force Age and Educational Structure in Austrian Industries in 2001," Chapters, in: Population Aging, Intergenerational Transfers and the Macroeconomy, chapter 3 Edward Elgar Publishing.
When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:22:y:2013:i:c:p:5-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.