In this paper we analyse the link between the age structure of the labour force and average labour productivity at the intermediate level of economic sectors. The analysis is based on a panel data set ranging over six years (2002-2007) and covers the sectors of mining, manufacturing and market oriented services in the Austrian economy. Our results exhibit a positive correlation of the share of older employees and productivity, while we cannot find any evidence for a significant relationship of the share of younger employees and productivity. Moreover, the estimated age-wage pattern does not hint at an over-payment of older employees.
ageing workforce production function age-productivity profile age-wage pattern