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Ageing, productivity and wages in Austria: Evidence from a matched employer-employee data set at the sector level

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  • Mahlberg, Bernhard
  • Freund, Inga
  • Prskawetz, Alexia

Abstract

In this paper we analyse the link between the age structure of the labour force and average labour productivity at the intermediate level of economic sectors. The analysis is based on a panel data set ranging over six years (2002-2007) and covers the sectors of mining, manufacturing and market oriented services in the Austrian economy. Our results exhibit a positive correlation of the share of older employees and productivity, while we cannot find any evidence for a significant relationship of the share of younger employees and productivity. Moreover, the estimated age-wage pattern does not hint at an over-payment of older employees.

Suggested Citation

  • Mahlberg, Bernhard & Freund, Inga & Prskawetz, Alexia, 2011. "Ageing, productivity and wages in Austria: Evidence from a matched employer-employee data set at the sector level," ECON WPS - Working Papers in Economic Theory and Policy 02/2011, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    • Handle: RePEc:zbw:tuweco:022011
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    More about this item

    Keywords

    ageing workforce; production function; age-productivity profile; age-wage pattern;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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