Different Productivities of Older Workers depending on Conditions
The Economic and Labour Relations Review 29 (4): pp. 521-542 DEC 2018
38 Pages Posted: 5 Jul 2016 Last revised: 21 Dec 2018
Date Written: April 10, 2018
In this paper, we examined the effect of workforce aging on company productivity. We found that an increase in the ratio of workers aged over 50 years to total workers had a negative effect on value added per worker, which was consistent with the findings of most previous studies based on European data. The results of an analysis including various classifications such as size, industry, and several financial conditions revealed that an increase in the ratio of older workers had positive effects on value added per worker in large manufacturing firms under risky or growing conditions. As the productivity of older workers may vary, future research may determine under what conditions – size, industry, region, and financial conditions – older workers contribute positively to productivity. Firms with financial troubles or those planning to downsize should be cautious to lay off older workers to improve organizational performance because these workers contribute positively to productivity under certain conditions.
Keywords: Aging, Productivity, Financial conditions, Firm size, Human Capital
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