Workforce Composition and Firm Productivity: Evidence from Taiwan

16 Pages Posted: 15 Sep 2010

See all articles by Jin‐Tan Liu

Jin‐Tan Liu

National Taiwan University - Department of Economics; National Bureau of Economic Research (NBER)

Meng-Wen Tsou

Tamkang University - Department of International Trade

Ping Wang

Washington University in St. Louis - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

We study the relationship between workforce composition and firm productivity based on a new employee-employer-matched data set, using an array of workforce characteristics and three alternative measures of firm productivity. While firm age is not essential for the performance of firms, those of smaller size and those in the steel and transportation industries outperform others. Moreover, labor quality, particularly the middle-aged with higher education, contributes significantly to firms' productivity. Furthermore, economic incentives and market competition both play important roles in the performance of firms. Finally, there is an employer-size premium with larger firms paying higher wages and nonwage benefits.

JEL Classification: C33, D20, J30

Suggested Citation

Liu, Jin-Tan and Tsou, Meng-Wen and Wang, Ping, Workforce Composition and Firm Productivity: Evidence from Taiwan. Economic Inquiry, Vol. 48, Issue 4, pp. 1032-1047, October 2010, Available at SSRN: https://ssrn.com/abstract=1677125 or http://dx.doi.org/10.1111/j.1465-7295.2009.00232.x

Jin-Tan Liu (Contact Author)

National Taiwan University - Department of Economics ( email )

21 Hsu-Chow Road
Taipei, 10020
Taiwan

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Meng-Wen Tsou

Tamkang University - Department of International Trade

Taiwan, 25137
China

Ping Wang

Washington University in St. Louis - Department of Economics ( email )

One Brookings Drive
St. Louis, MO 63130
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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