The Age-Productivity Pattern: Do Location and Sector Affiliation Matter?

24 Pages Posted: 7 Jun 2013

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

Jesús Crespo Cuaresma

Vienna University of Economics and Business

Alexia Fürnkranz-Prskawetz

Vienna University of Technology

Multiple version iconThere are 2 versions of this paper

Date Written: May 2, 2013

Abstract

Current demographic developments are expected to challenge the sustainability of welfare in industrialised economies. Persistent low fertility levels and increasing survival rates to older age imply a decreasing share of younger individuals within the labour force that needs to support an increasing share of old people out of the labour force. We use matched employer-employee data for Austria at the firm level in order to study the link between the age structure and labour productivity and concentrate on the role played by regional location and sector affiliation. We apply multilevel estimation techniques in order to account for systematic variation of the age-productivity pattern with regard to these two dimensions. Our results indicate that the age-productivity pattern differs significantly across regions and across sectors and that sectoral differences are the more sizable source of heterogeneity in the link between the age structure and firm productivity.

Keywords: age-productivity profile, firm heterogeneity, employer-employee data, multilevel regression methods, regional variability, sectoral variability

JEL Classification: C21, J14, J24, J82, R11

Suggested Citation

Mahlberg, Bernhard and Freund, Inga and Cuaresma, Jesus Crespo and Fürnkranz-Prskawetz, Alexia, The Age-Productivity Pattern: Do Location and Sector Affiliation Matter? (May 2, 2013). Available at SSRN: https://ssrn.com/abstract=2259472 or http://dx.doi.org/10.2139/ssrn.2259472

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

Jesus Crespo Cuaresma

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Alexia Fürnkranz-Prskawetz

Vienna University of Technology ( email )

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

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