The Impact of Workforce Age Heterogeneity on Company Productivity
We analyse how the age structure of a company’s workforce affects company performance using a linked employer employee panel dataset. With demographic changes at hand, this is of utmost importance for firms and organisations. Focussing on the organizational, not the individual level, we examine the effect of changes in age heterogeneity of a company’s workforce on company productivity. Incorporating theoretical insights and empirical results on aging and age diversity from multiple and very diverse disciplines, we conduct a cost-benefit analysis to evaluate how changes in age heterogeneity may affect organizational performance. Our dataset contains more than 18,000 German firms and 2 million employees over 10 years. We find significant effects of age heterogeneity on firm productivity, and that these effects are particularly moderated by type of tasks. There are positive productivity effects of increasing age heterogeneity, but only for companies and workforces conducting innovative or creative tasks.
|Date of creation:||Feb 2008|
|Date of revision:||Sep 2009|
|Contact details of provider:|| Postal: |
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.isu.uzh.ch
More information through EDIRC
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.:
- 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.
- Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003.
"German works councils in the production process,"
21, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- S. Iranzo & F. Schivardi & E. Tosetti, 2006.
"Skill dispersion and firm productivity: an analysis with employer-employee matched data,"
Working Paper CRENoS
200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2008. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 247-285, 04.
- Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers.
- Susanna Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006. "Skill dispersion and firm productivity; an analysis with employer-employee matched data," Temi di discussione (Economic working papers) 577, Bank of Italy, Economic Research and International Relations Area.
- 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.
- Stock, Ruth, 2004. "Drivers of Team Performance: What Do We Know and What Have We Still to Learn?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35551, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Grund, Christian & Westergård-Nielsen, Niels, 2005.
"Age Structure of the Workforce and Firm Performance,"
05-10, University of Aarhus, Aarhus School of Business, Department of Economics.
- Christian Grund & Niels Westergaard-Nielsen, 2008. "Age structure of the workforce and firm performance," International Journal of Manpower, Emerald Group Publishing, vol. 29(5), pages 410-422, September.
- Grund, Christian & Westergård-Nielsen, Niels C., 2005. "Age Structure of the Workforce and Firm Performance," IZA Discussion Papers 1816, Institute for the Study of Labor (IZA).
- Sean Nicholson & Mark V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek & Marc L. Berger, 2006.
"Measuring the effects of work loss on productivity with team production,"
John Wiley & Sons, Ltd., vol. 15(2), pages 111-123.
- Sean Nicholson & Marc V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek, 2004. "Measuring the Effects of Workloss on Productivity With Team Production," NBER Working Papers 10632, National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1999.
"Globalisation and the Market for Team-Mates,"
Royal Economic Society, vol. 109(454), pages C15-40, March.
- 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].
- Gary Charness & Marie-Claire Villeval, 2007.
"Cooperation, Competition, and Risk Attitudes: An Intergenerational Field and Laboratory Experiment,"
- Charness, Gary & Villeval, Marie Claire, 2007. "Cooperation, Competition, and Risk Attitudes: An Intergenerational Field and Laboratory Experiment," IZA Discussion Papers 2574, Institute for the Study of Labor (IZA).
- Gartner, Hermann, 2005. "The imputation of wages above the contribution limit with the German IAB employment sample," FDZ Methodenreport 200502_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Ruth Stock, 2004. "Drivers Of Team Performance: What Do We Know And What Have We Still To Learn?," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 56(3), pages 274-306, July.
- Haltiwanger, John C. & Lane, Julia I. & Spletzer, James R., 2007.
"Wages, productivity, and the dynamic interaction of businesses and workers,"
Elsevier, vol. 14(3), pages 575-602, June.
- John Haltiwanger & Julia Lane & James Spletzer, 2000. "Wages, Productivity, and the Dynamic Interaction of Businesses and Workers," NBER Working Papers 7994, National Bureau of Economic Research, Inc.
- Stock, Ruth, 2004. "Drivers of Team Performance: What Do We Know and What Have We Still to Learn?," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60487, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
- Axel Börsch-Supan, 2003. "Labor Market Effects of Population Aging," LABOUR, CEIS, vol. 17(SpecialIs), pages 5-44, 08.
When requesting a correction, please mention this item's handle: RePEc:iso:wpaper:0078. 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: (IBW IT)
If references are entirely missing, you can add them using this form.