Age-related productivity decrease in high-waged and low-waged employees
| Autor: | Jaan Masso, Urmas Varblane, Liis Roosaar |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Employee productivity
Organizational Behavior and Human Resource Management business.industry Strategy and Management 05 social sciences Statistical difference Human capital Management of Technology and Innovation Manufacturing Age related 0502 economics and business Demographic economics Business 050207 economics Practical implications Productivity 050203 business & management Panel data |
| Zdroj: | International Journal of Manpower. 40:1151-1170 |
| ISSN: | 0143-7720 |
| DOI: | 10.1108/ijm-03-2018-0086 |
| Popis: | Purpose The purpose of this paper is to clarify whether the age-productivity curve is different for low-waged and high-waged employees. Design/methodology/approach Productivity growth is decomposed at the firm level into contributions by hired, separated and staying workers. Based on a matched employer-employee database of Estonian firms from 2006 to 2014 and considering the age as well as wages of employees, a panel data model with fixed effects is constructed to show the relative productivity of each cohort of employees. Findings High-waged employees appeared to be relatively more productive than low-waged employees and middle-aged were more productive than young or old employees. However, the productivity difference between young and old employees was not statistically significant. The age-productivity curve of high-waged employees appeared to be flatter than that of low-waged employees. Only in knowledge intensive services were the low-waged old employees statistically significantly less productive than high-waged old employees. In the manufacturing industry, the young were more productive than in services, in knowledge intensive services the old were less productive than in traditional services. Research limitations/implications The productivity of employees is only analysed for cohorts of employees. Practical implications Employers can be encouraged to hire older employees because old employees are shown to remain at least as productive as young employees. Originality/value The decomposition of labour productivity at the firm level is further developed, as the statistical difference between the productivity of different groups of employees is analysed. |
| Databáze: | OpenAIRE |
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