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Are older workers really harmful to firm productivity?
- Are older workers really harmful to firm productivity?
- Lee, Bokwon; Yang, Jae-Suk
- Korea Advanced Institute of Science and Technology
| Title |
Are older workers really harmful to firm productivity?
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|---|---|
| Material Type | Report |
| Author(English) |
Lee, Bokwon; Yang, Jae-Suk |
| Publisher |
Daejeon, South Korea : Korea Advanced Institute of Science and Technology |
| Date | 2016-07 |
| Pages | 21 |
| Subject Country | South Korea(Asia and Pacific) |
| Language | English |
| File Type | Link |
| Subject | Social Development < Population Social Development < Employment |
| Holding | KAIST |
| License |  |
Abstract
This paper examines the impact of workforce aging on company productivity. We use data from the Korean Workplace Panel Survey, which has been approved by the Korean government and conducted by the Korea Labor Institute. We find that an increase in the ratio of workers aged over 50 years to total workers has a negative impact on value added per worker, which is consistent with the findings of most previous studies based on European data. However, for large marginal or growing companies in the manufacturing industry, an increase in the ratio has a positive impact on value added per worker. This implies that raising the retirement age can be beneficial for productivity in marginal or growing companies. Therefore, financially troubled companies should be very cautious about laying off long-term workers because they may be essential for business success.
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