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Mit 55 zum alten Eisen? : eine Analyse des Alterseinflusses auf die Produktivität anhand des LIAB (Dispensable at 55? : analyzing the impact of age on productivity using the LIAB dataset)

Author

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  • Schneider, Lutz

Abstract

"Against the background of an aging labor force in Germany and insufficient job opportunities for older people, the paper raises the question as to how age affects the productivity of workers. Due to opposite developments of certain human abilities across the life span, gerontological research supports the hypothesis of an inverted u-shaped age-productivity profile. Middle aged workers are supposed to achieve the highest productivity level, whereas both young and old employees should show lower productivity levels. The analysis is carried out on the basis of a new linked employer-employee dataset of the Institute for Employment Research (LIAB). Within a production function framework it is tested econometrically whether the age composition of a firm's workforce affects its productivity and if so in what way. The regressions are carried out separately for the manufacturing and the service sectors. The cross-section estimations of the year 2003 reveal a positive correlation between firm productivity and the share of middle-aged employees (35-44 years old). Furthermore, in the manufacturing sector, a negative correlation between productivity and the proportion of the youngest age group (15-24 years old) can be seen. Thus the results provide evidence of an inverted u-shaped age-productivity profile in this sector. In the service sector, in contrast, the share of the youngest workers seems to increase productivity compared to the reference group of the 55-64 year-old employees." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Schneider, Lutz, 2007. "Mit 55 zum alten Eisen? : eine Analyse des Alterseinflusses auf die Produktivität anhand des LIAB (Dispensable at 55? : analyzing the impact of age on productivity using the LIAB dataset)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 77-97.
  • Handle: RePEc:iab:iabzaf:v:2007:i:1:p:77-97
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    References listed on IDEAS

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    1. David W. Galenson & Bruce A. Weinberg, 2000. "Age and the Quality of Work: The Case of Modern American Painters," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 761-777, August.
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    3. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
    4. Levin, Sharon G & Stephan, Paula E, 1991. "Research Productivity over the Life Cycle: Evidence for Academic Scientists," American Economic Review, American Economic Association, vol. 81(1), pages 114-132, March.
    5. Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomäki, 2004. "The Roles of Employer and Employee Characteristics for Plant Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 249-276, May.
    6. 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.
    7. Börsch-Supan, Axel & Düzgün, Ismail & Weiss, Matthias, 2005. "Altern und Produktivität: 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.
    8. Richard J. Agnello, 2002. "Investment Returns and Risk for Art: Evidence from Auctions of American Paintings," Eastern Economic Journal, Eastern Economic Association, vol. 28(4), pages 443-463, Fall.
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