Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63780
Authors: 
Ilmakunnas, Pekka
Maliranta, Mika
Year of Publication: 
2007
Series/Report no.: 
ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1092
Abstract: 
We study whether older workers are costly to firms. Our estimation equations are derived from a variant of the decomposition methods frequently used for measuring micro-level sources of industry productivity growth. By using comprehensive linked employeremployee data from the Finnish business sector, we study the productivity and wage effects, and hence the profitability effects, of hiring and separation of younger and older workers. The evidence shows that separations of older workers are profitable to firms, especially in the manufacturing ICT-industries. Robustness checks include the use of regional labor supply and other variables as instruments for the potential endogeneity of the labor flows.
Subjects: 
aging, productivity, wage, profits, hiring, separation, employer-employee data
JEL: 
C43
J23
J24
J63
M51
Document Type: 
Working Paper

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