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Positive Effects of Ageing and Age-Diversity in Innovative Companies Ð Large Scale Evidence on Company Productivity

  • Uschi Backes-Gellner

    ()

    (Department of Business Administration, University of Zurich)

  • Stephan Veen

    (Disney Research Zurich)

This paper investigates how age diversity within a companyÕs workforce affects company productivity. It introduces a theoretical framework that helps to integrate results from a broad disciplinary spectrum of ageing and diversity research to derive empirically testable hypotheses on the effects of age diversity on company productivity. It argues that first the balance between costs and benefits of diversity determines the effect of age diversity on company productivity and that second the type of task performed acts as a moderator. To test these hypotheses, it uses a large-scale employer-employee panel data set (the LIAB.) Results show that increasing age diversity has a positive effect on company productivity if and only if a company engages in creative rather than routine tasks.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0093_lhwpaper.pdf
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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0093.

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Length: 33 pages
Date of creation: Aug 2013
Date of revision:
Publication status: published
Handle: RePEc:iso:educat:0093
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  1. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies
    [The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and So
    ," Introductory Chapters, Princeton University Press.
  2. Ennen, Edgar & Richter, Ansgar, 2009. "The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations," MPRA Paper 15666, University Library of Munich, Germany.
  3. Uschi Backes-Gellner & Simone Tuor, 2007. "Avoiding Labor Shortages by Employer Signaling - On the Importance of Good Work Climate and Labor Relations," Economics of Education Working Paper Series 0010, University of Zurich, Institute for Strategy and Business Economics (ISU).
  4. Lazear, Edward P, 1999. "Globalisation and the Market for Team-Mates," Economic Journal, Royal Economic Society, vol. 109(454), pages C15-40, March.
  5. Uschi Backes-Gellner & Martin R. Schneider & Stephan Veen, 2011. "Effect of Workforce Age on Quantitative and Qualitative Organizational Performance: Conceptual Framework and Case Study Evidence," Working Papers 0143, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Francesco Daveri & Mika Maliranta, 2007. "Age, seniority and labour costs: lessons from the Finnish IT revolution," Economic Policy, CEPR;CES;MSH, vol. 22, pages 117-175, 01.
  7. Alda, Holger & Bender, Stefan & Gartner, Hermann, 2005. "The linked employer-employee dataset of the IAB (LIAB)," IAB Discussion Paper 200506, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  8. Haltiwanger, John C. & Lane, Julia I. & Spletzer, James R., 2007. "Wages, productivity, and the dynamic interaction of businesses and workers," Labour Economics, Elsevier, vol. 14(3), pages 575-602, June.
  9. Lazega, Emmanuel, 2000. "Rule enforcement among peers : A lateral control regime," Economics Papers from University Paris Dauphine 123456789/1713, Paris Dauphine University.
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