Ageing, Productivity and Wages in Austria: Evidence from a Matched Employer-Employee Data Set at the Sector Level
ECON Working Paper No. 02/2011
26 Pages Posted: 6 Feb 2012
Date Written: April 15, 2011
In this paper we analyze the link between the age structure of the labor force and average labor productivity at the intermediate level of economic sectors. The analysis is based on a panel data set ranging over six years (2002-2007) and covers the sectors of mining, manufacturing and market oriented services in the Austrian economy. Our results exhibit a positive correlation of the share of older employees and productivity, while we cannot find any evidence for a significant relationship of the share of younger employees and productivity. Moreover, the estimated age-wage pattern does not hint at an over-payment of older employees.
Keywords: ageing workforce, production function, age-productivity profile, age-wage pattern
JEL Classification: J14, J24, J82
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