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Are Young and Old Workers Harmful for Firm Productivity?Thierry LallemandUniversité Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA) Francois RycxUniversité Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA); Institute for the Study of Labor (IZA) IZA Discussion Paper No. 3938 Abstract: This paper investigates the effects of the workforce age structure on the productivity of large Belgian firms. More precisely, it examines different scenarios of changes in the proportion of young (16-29 years), middle-aged (30-49 years) and old (more than 49 years) workers and their expected effects on firm productivity. Using detailed matched employer-employee data, we find that a higher share of young (old) workers within firms is favourable (harmful) for firm value added per capita. Results also show that age structure effects on productivity are stronger in ICT than in non-ICT firms.
Number of Pages in PDF File: 34 Keywords: firm performance, workforce age structure, demographic changes JEL Classification: J21, J31, L25 working papers seriesDate posted: January 19, 2009Suggested CitationContact Information
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