Ageing, Productivity and Wages in Austria: Sector Level Evidence

Posted: 15 May 2012

See all articles by Bernhard Mahlberg

Bernhard Mahlberg

Institute for Industrial Research (IWI); Vienna University of Economics and Business - Institute for Production Management

Inga Freund

University of Vienna - Vienna Institute of Demography

Alexia Fürnkranz-Prskawetz

Vienna University of Technology

Date Written: May 10, 2012

Abstract

In this paper we analyse the link between the age structure of the labour force and average labour productivity as well as average wage across industrial sectors. While this intermediate economic level has been under-explored up to now, we will argue that it provides valuable insights in several respects. Our analysis is based on a panel data set ranging over 6 years (2002–2007). It 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, whereas 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

Suggested Citation

Mahlberg, Bernhard and Freund, Inga and Fürnkranz-Prskawetz, Alexia, Ageing, Productivity and Wages in Austria: Sector Level Evidence (May 10, 2012). Emprica, Journal of Applied Economics and Economic Policy, 2012 DOI: 10.1007/s10663-012-9192-9. Available at SSRN: https://ssrn.com/abstract=2059838

Bernhard Mahlberg (Contact Author)

Institute for Industrial Research (IWI) ( email )

Mittersteig 10/4
Vienna, 1050
Austria
+43 1 513 44 11 0 (Phone)
+43 1 513 44 11 2099 (Fax)

HOME PAGE: http://www.iwi.ac.at/

Vienna University of Economics and Business - Institute for Production Management ( email )

Welthandelsplatz 1
Building D2, Entrance C, 3rd floor
Vienna, 1020
Austria
+43 1 313 36 - 5615 (Phone)

HOME PAGE: http://https://www.wu.ac.at/en/prodmanengl/

Inga Freund

University of Vienna - Vienna Institute of Demography ( email )

Prinz Eugenstr. 8-10
Vienna, 1040
Austria

Alexia Fürnkranz-Prskawetz

Vienna University of Technology ( email )

Wiedner Hauptstraße 8/105--3
Vienna, 1040
Austria

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