Browse > Article
http://dx.doi.org/10.29214/damis.2018.37.1.007

The Effects of the workforce Age Structure on Productivity or Labor Costs  

Kim, Ki-Min (Dept. of Economics, Korea University)
Publication Information
Management & Information Systems Review / v.37, no.1, 2018 , pp. 123-138 More about this Journal
Abstract
In this paper, we use panel dataset from Korean linked worker-firm to analyse the effects of the workforce age structure on the productivity or labor costs. We measure 'labor productivity' as added value per capita, 'cost of labor' as labor cost per capita and estimate a dynamic panel model to study the effects of the workforce age structure on the productivity or labor costs. Empirical analysis results show that the workforce age structure is positively related to productivity and labor costs, but only up to the aged of 35-39. That is, we find that an increase in the proportion of younger workers or elder workers rather than the aged 35-39 has a negative effect on productivity and labor cost. In particular, the difference between the estimation coefficient of productivity and labor cost when the share of workers aged 50 or older is increased instead of the aged 35-39 is higher than the difference between the estimation coefficient of productivity and labor cost when the share of workers aged 30 or younger is increased instead of the aged 35-39. Our results exhibit that it is reasonable for firms to worry about declining productivity of elderly workers, whereas firms already used older workers efficiently, such as by adjusting their labor costs.
Keywords
Aging; Productivity; Cost of Labor; System GMM; Workplace Panel Survey; Matched Worker-Firm Panel Dataset;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Cardoso, A. R., Guimaraes, P., and J. Varejao(2011), "Are Older Workers Worthy of Their Pay? An Empirical Investigation of Age-Productivity and Age-Wage Nexuses", De Economist, 159(2), 95-111.   DOI
2 Dostie, B. (2011), "Wages, Productivity and Aging", De Economist, 159(2), 139-158.   DOI
3 Gobel, C. and T. Zwick(2009), "Age and Productivity - Evidence from Linked Employer Employee Data", ZEW Discussion Paper, Mannheim.
4 Grund, C. and N. Westergaard-Nielsen (2008), "Age Structure of the Workforce and Firm Performance", International Journal of Manpower, 2 (5), 410-422.
5 Hayward, B., S. Taylor, N. Smith and, C. Davies(1997), "Evaluation of the Campaign for Older Workers", HMSO, Norwich
6 Hellerstein, J. K., Neumark, D., and Troske, K. R. (1999). "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production", Journal of Labor Economics, 17(3), 409-446.   DOI
7 Ilmakunnas, P. and M. Maliranta(2007), "Aging, Labor Turnover and Firm Performance", Discussion Paper, 1092, The Research Institute of the Finnish Economy, Helsinki.
8 Jovanovic, B. (1979), "Job Matching and the Theory of Turnover", Journal of Political Economy, 87, 972-990.   DOI
9 Lallemand, T. and F. Rycx(2009), "Are Older Workers Harmful for Firm Productivity?", De Economist, 157(3), 273-292.   DOI
10 Lazear, Edward P. (1979), "Why is There Mandatory Retirement?", The Journal of Political Economy, 1261-1284.
11 Malmberg, B., Freund, B., and Prskawetz, A. (2013), "Ageing, Productivity and Wages in Austria: Sector Level", Empirica, 40(4), 561-584.   DOI
12 Mincer, J. (1974), "Schooling, Experience and Earnings", National Bureau of Economic Research, Columbia University Press, New-York.
13 장일현․이상민․유규창(2012), "고령화가 기업 성과에 미치는 영향과 인적자원관리제도의 조절효과에 관한 연구", 2012년 한국인사관리학회 춘계학술대회 발표자료, 73-89.
14 Van Ours, J. C. and L. Stoeldraijer(2011), "Age, Wage and Productivity in Dutch Manufacturing", De Economist, 159(2), 113-137.   DOI
15 Skirbekk, V. (2004), "Age and Individual Productivity: A Literature Survey", Vienna Yearbook of Population Research 2, 133-153.
16 김재원․유규창(2016), "직무분석을 활용한 직무중심 인사관리와 고령화가 기업 성과에 미치는 영향", 노동정책연구, 16(2), 65-92.
17 박지성․김성수(2014), "고령화-조직성과 관계에 있어 지식 전파 HR 제도의 역할 -지식경영 관점을 중심으로", 인적자원관리연구, 21(3), 173-196.
18 석진홍․박우성(2014), "인력 고령화가 기업의 생산성과 인건비에 미치는 영향", 노동정책연구, 14(3), 79-104.
19 신동균(2005), "고령화와 노동생산성 전망", 경제논집, 26(1), 41-93.
20 장윤섭․양준석(2017), "근로자 고령화가 기업의 신기술 도입과 생산성에 미치는 효과", 노동정책연구, 17(1), 109-136.
21 지은정(2016), "인력고령화와 노동생산성: 교육훈련의 상호작용효과를 중심으로", 사회보장연구, 32(2), 245-270.
22 통계청 Kosis, 장래인구추계, 2016
23 Akerlof, G. (1976), "The Economics of Caste and of the Rat Race and Other Woeful Tales", Quarterly Journal of Economics, 90, 599-617.   DOI
24 Arellano, M., and Bover, O. (1995), "An Other Look at the Instrumental Variable Estimation of Error-Components Models", Journal of Econometrics, 68, 29-51.   DOI
25 Aubert, P. (2003), "Productivity, Wage and Demand for Elder Workers; An Examination on French Matched Employer-Employee Data", Working Paper INSEE, Paris.
26 Aubert., P. and B. Crepon(2006), "Age, Wage and Productivity: Firm-Level Evidence", Discussion Paper INSEE, Paris.
27 Brooke, L. (2003), "Human Resources Costs and Benefits of Maintaining a Mature-age Workforce", International Journal of Manpower, 24, 260-284.   DOI
28 Becker, G. S. (1962), "Investment in Human Capital: A Theoretical Analysis", The Journal of Political Economy, 70(5), 9-49.   DOI
29 Blundell, R., and Bond, S. (1998), "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models", Journal of Econometrics, 87, 115-143.   DOI
30 Borsch-Supan, A. and M. Weiss(2010), "Productivity and Age : Evidence from Work Teams at the Assembly Line", MEA Discussion Paper, University of Mannheim.