Age and Productivity - Evidence from Linked Employer Employee Data

41 Pages Posted: 9 Jul 2009

See all articles by Christian Goebel

Christian Goebel

Catholic University of Louvain (UCL); ZEW – Leibniz Centre for European Economic Research

Thomas Zwick

Centre for European Economic Research (ZEW); University of Würzburg - Business Administration & Economics; Maastricht University - Research Centre for Education and the Labour Market (ROA)

Date Written: 2009

Abstract

In most Western, industrialised countries the workforce is ageing rapidly. In order to assess the possible consequences of an ageing workforce, this paper measures the impact of changes in the age structure of establishments on productivity using representative linked employer-employee panel data. We take into account that the levels as well as the changes in the age structure of establishments and their production are likely to be simultaneously determined and apply dynamic GMM methods. We find that establishment productivity increases with the share of employees until the age of 50-55 and only decreases slightly afterwards. Our findings suggest that previous estimations are biased because they either do not take into account endogeneity, time dependencies, or crucial information correlated with age shares and productivity. Large standard deviations point to important variation in the age productivity profile among establishments.

Keywords: ageing workforce, age, productivity, LEED, system GMM

JEL Classification: J11, J14, J21

Suggested Citation

Goebel, Christian and Goebel, Christian and Zwick, Thomas and Zwick, Thomas, Age and Productivity - Evidence from Linked Employer Employee Data (2009). ZEW - Centre for European Economic Research Discussion Paper No. 09-020, Available at SSRN: https://ssrn.com/abstract=1431878 or http://dx.doi.org/10.2139/ssrn.1431878

Christian Goebel (Contact Author)

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://homepages.econ.ucl.ac.be/goebel/

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Thomas Zwick

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

University of Würzburg - Business Administration & Economics ( email )

Sanderring 2
Wuerzburg, D-97070
Germany

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

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