Getting old is no picnic? Sector-specific relationship between workers age and firm productivity by Konstantins Benkovskis, Stockholm School of Economics in Riga and Bank of Latvia.
Please register by sending an email to [email protected] with your full name, surname and university/work-place until 21st of November, 13:00.
Seminar language: English.
This study provides new evidence on sector-specific differences in the age-productivity profiles in a country that witnessed substantial shifts in economic structure and features flexible labour market and high labour force participation among the elderly. Using a matched employer-employee dataset of Latvian firms, the paper unveils a conventional hump-shaped or downward sloping relationship in manufacturing and trade, but almost no or very small negative effect of ageing workforce in knowledge-intensive service sectors that largely employ high-skilled white-collar employees. The results suggests that investing in human capital, in particular training of elderly employees, as well as addressing severe skill shortages in ICT service sector have to be considered to reduce the downward pressure of ageing on firm performance. It also highlights the importance of efforts of public institutions to improve health care and promote healthier lifestyles for raising the number of years of life spent in good health.