Ageing, productivity and wages in Austria

Mahlberg, Bernhard and Freund, Inga and Crespo Cuaresma, Jesus ORCID: and Prskawetz, Alexia (2013) Ageing, productivity and wages in Austria. Labour Economics, 22. pp. 5-15. ISSN 0927-5371

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Current demographic developments in industrialized countries and their consequences for workforce ageing challenge the sustainability of intergenerational transfers and economic growth. A shrinking share of the young workforce will have to support a growing share of elderly, non-working people. Therefore, the productivity of the workforce is central to a sustainable economic future. Using a new matched employeremployee panel dataset for Austrian firms for the period 2002-2005, we study the relationship between the age structure of employees, labour productivity and wages. These data allow us to account, simultaneously, for both socio-demographic characteristics of employees and firm heterogeneity, in order to explain labour productivity and earnings. Our results indicate that firm productivity is not negatively related to the share of older employees it employs. We also find no evidence for overpayment of older employees. Our results do not show any association between wages and the share of older employees. Furthermore, we find a negative relationship between the share of young employees and labour productivity as well as wages, which is more prevalent in the industry and construction sector. (authors' abstract)

Item Type: Article
Additional Information: This is an article in press, a corrected proof. To see the final version of this paper please visit the publisher's website. The definitive version is available at
Keywords: age-productivity/ -wage profile / employer-employee data / sector affiliation
Classification Codes: JEL J14, J24, J82
Divisions: Departments > Volkswirtschaft > Makroökonomie
Version of the Document: Accepted for Publication
Variance from Published Version: Typographical
Depositing User: ePub Administrator
Date Deposited: 11 Dec 2012 08:19
Last Modified: 02 Dec 2019 09:26
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