Age and Gender Effects of Workforce Composition on Productivity and Profits: Evidence from a New Type of Data for German Enterprises
Contemporary Economics, Vol. 8, No. 1, pp. 25-46, 2014
22 Pages Posted: 10 May 2014
Date Written: March 31, 2014
This empirical paper documents the relationship between the composition of a firm’s workforce (with a special focus on age and gender) and its performance (productivity and profitability) for a large representative sample of enterprises from manufacturing industries in Germany using newly available, unique data. We find concave age-productivity profiles and a negative correlation of age on firms’ profitability. Moreover, our micro-econometric analysis reveals for the first time that the ceteris paribus lower level of productivity in firms with a higher share of female employees does not go hand in hand with a lower level of profitability in these firms.
Keywords: ageing, firm performance, gender, productivity, profitability, Germany
JEL Classification: D22, D24, J21, J24, L25
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