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Ageing and employers’ perceptions of labour costs and productivity

Author

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  • Wieteke S. Conen
  • Hendrik P. van Dalen
  • Kène Henkens

Abstract

Purpose - The purpose of this paper is to examine employers’ perceptions of changes in the labour cost‐productivity gap due to the ageing of the workforce, the effects of tenure wages and employment protection on the perceived gap, and whether a perceived labour cost‐productivity gap affects employers’ recruitment and retention behaviour towards older workers. Design/methodology/approach - The authors analyse surveys administered to employers in Denmark, France, Germany, Italy, the Netherlands, Poland and Sweden. Findings - Approximately half of employers associate the ageing of the personnel with a growing gap between labour costs and productivity. Both the presence of tenure wages and employment protection rules increase the probability of employers perceiving a widening labour cost‐productivity gap due to the ageing of their workforce. A counterfactual shows that even when employment protection and tenure wage systems are abolished, 40 percent of employers expect a net cost increase. The expected labour cost‐productivity gap negatively affects both recruitment and retention of older workers. Originality/value - In this paper, the wage‐productivity gap is examined through the perceptions of employers using an international comparative survey.

Suggested Citation

  • Wieteke S. Conen & Hendrik P. van Dalen & Kène Henkens, 2012. "Ageing and employers’ perceptions of labour costs and productivity," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(6), pages 629-647, September.
    • Handle: RePEc:eme:ijmpps:v:33:y:2012:i:6:p:629-647
    DOI: 10.1108/01437721211261796
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    Citations

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    Cited by:

    1. Moraes, Ricardo Kalil & Wanke, Peter Fernandes & Faria, João Ricardo, 2021. "Unveiling the endogeneity between social-welfare and labor efficiency: Two-stage NDEA neural network approach," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    2. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    3. Rob Euwals & Anja Deelen, 2014. "Do Wages Continue Increasing at Older Ages? Evidence on the Wage Cushion in the Netherlands," CPB Discussion Paper 282.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Hendrik Dalen & Kène Henkens, 2013. "Dilemmas of Downsizing During the Great Recession: Crisis Strategies of European Employers," De Economist, Springer, vol. 161(3), pages 307-329, September.
    5. Kosowski Tanja, 2018. "The Notion of Age in Organizational Research," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 26(4), pages 32-46, December.
    6. van Dalen, H.P. & Henkens, K., 2015. "Why Demotion of Older Workers is a No-Go Area for Managers," Discussion Paper 2015-025, Tilburg University, Center for Economic Research.
    7. Garcia, Maria Teresa Medeiros & Fontainha, Elsa & Passos, José, 2017. "Hiring older workers: The case of Portugal," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 71-77.
    8. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    9. Kolobova, Valeriya A. & Zyatchin, Andrey V., 2016. "Business Process for the Selection of the Raw MaterialsÙ Supplier on the Example of the Company "Yuzhtehmontazh"," Conference Papers 8676, Graduate School of Management, St. Petersburg State University.
    10. Rob Euwals & Anja Deelen, 2014. "Do Wages Continue Increasing at Older Ages? Evidence on the Wage Cushion in the Netherlands," CPB Discussion Paper 282, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Deelen, Anja & Euwals, Rob, 2014. "Do Wages Continue Increasing at Older Ages? Evidence on the Wage Cushion in the Netherlands," IZA Discussion Papers 8467, Institute of Labor Economics (IZA).
    12. Jaap Oude Mulders & Hendrik Dalen & Kène Henkens & Joop Schippers, 2014. "How Likely are Employers to Rehire Older Workers After Mandatory Retirement? A Vignette Study Among Managers," De Economist, Springer, vol. 162(4), pages 415-431, December.

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