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Can older workers stay productive? The role of ICT skills and training

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  • Jong-Wha Lee
  • Do Won Kwak
  • Eunbi Song

Abstract

This paper quantitatively examines the effects of aging on labor productivity using individual worker data in Korea. We find that attainment of information and communications technology (ICT) skills and participation in job-related training can help older workers stay productive. The estimation results present that ICT skills attainment has a positive effect on the wages of the older workers aged 50–64 with a high level of education or in a skill-intensive occupation. Job training also has a significant positive effect on the wages of older workers. Even compared to younger workers, older well-educated workers can be more productive through higher ICT skills attainment and job-training participation. The evidence suggests that a productivity decrease in line with the aging process can be mitigated by training aging workers to equip themselves with ICT skills.

Suggested Citation

  • Jong-Wha Lee & Do Won Kwak & Eunbi Song, 2021. "Can older workers stay productive? The role of ICT skills and training," CAMA Working Papers 2021-04, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2021-04
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2021-01/4_2021_lee_kwak_song.pdf
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    More about this item

    Keywords

    aging; education; information and communications technology; productivity; skill; training;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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