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http://ssrn.com/abstract=2046952
 
 

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Ageing and Employers' Perceptions of Labour Costs and Productivity: A Survey Among European Employers


Wieteke Conen


Netherlands Interdisciplinary Demographic Institute (NIDI)

Hendrik P. Van Dalen


Tilburg University, Center and Faculty of Economics and Business Administration; Netherlands Interdisciplinary Demographic Institute (NIDI)

Kene Henkens


Netherlands Interdisciplinary Demographic Institute

February 17, 2012

Netspar Discussion Paper No. 02/2012-013

Abstract:     
Purpose: This paper examines employers’ perceptions of changes of the labour cost-productivity gap due to the ageing of the workforce, the effects of tenure wages and employment protect ion on the perceived gap and whether a perceived labour cost-productivity gap affects employers’ recruitment and retention behaviour towards older workers.

Methodology: We analyze surveys administered to employers in Denmark, France, Germany, Italy, the Netherlands, Poland and Sweden.

Findings: Approximately half of the employers associate the ageing of the personnel staff with a growing gap between labour costs and productivity. Both the presence of tenure wages and employment protection rules increase the probability that employers perceive a widening labour cost–productivity gap due to the ageing of their workforce. A counterfactual shows that even when employment protection and tenure wage systems are abolished 40 percent of the employers expect a net cost increase. The expected labour cost-productivity gap negatively affects both recruitment and retention of older workers.

Originality: The wage-productivity gap is examined by the perceptions of employers using an international comparative survey.

Number of Pages in PDF File: 35

Keywords: Older workers, labour costs, labour productivity, ageing, employers, tenure, seniority wages, retirement

JEL Classification: -

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Date posted: April 27, 2012  

Suggested Citation

Conen, Wieteke and van Dalen, Hendrik P. and Henkens, Kene, Ageing and Employers' Perceptions of Labour Costs and Productivity: A Survey Among European Employers (February 17, 2012). Netspar Discussion Paper No. 02/2012-013. Available at SSRN: http://ssrn.com/abstract=2046952 or http://dx.doi.org/10.2139/ssrn.2046952

Contact Information

Wieteke Conen
Netherlands Interdisciplinary Demographic Institute (NIDI) ( email )
P.O. Box 11650
NL-2502 AR The Hague
Netherlands
Hendrik P. Van Dalen
Tilburg University, Center and Faculty of Economics and Business Administration ( email )
Tilburg University
P.O. Box 90153
NL-5000 LE Tilburg
Netherlands
+13 4668205 (Phone)
HOME PAGE: http://www.tilburguniversity.nl/webwijs/show/?uid=h.p.vandalen
Netherlands Interdisciplinary Demographic Institute (NIDI) ( email )
P.O. Box 11650
NL-2502 AR The Hague
Netherlands
+70 356 5237 (Phone)
+70 364 7187 (Fax)
HOME PAGE: http://www.nidi.knaw.nl/en/staff/vandalen/
Kene Henkens (Contact Author)
Netherlands Interdisciplinary Demographic Institute ( email )
P.O. Box 11650
The Hague NL-2502 AR
Netherlands
+3170 3565235 (Phone)
+3170 3647187 (Fax)
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