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Age structure of the workforce and firm performance

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  • Niels Chr. Westergård-Nielsen, Denmark
  • Christian Grund, University of Wïrzburg, Germany
  • http://www.asb.dk/omos/institutter/departmentofeconomics/
  • http://www.asb.dk/forskning/forskningscentreoggrupper/forskningscentre/ccpcenterforcorporateperformance/
Purpose - Given the ongoing demographic change in European countries, this paper aims to exploreempirically the link between age structures of employees in firms and firm performance. Design/methodology/approach - Based on theoretical considerations, the paper examines the linkbetween both the average age and the standard deviation of employees' age and firms' value added per employee. Linked employer employee data of all private-sector firms in Denmark with at least 20 employees is used. Findings - A pyramidal or inverse U-shaped interrelation is found between mean age and standarddeviation of age and value added per employee, respectively. Research limitations/implications - It would be interesting to determine whether the results hold for different countries with other institutional environments.Originality/value - This is the first paper to examine the link between corporate age structures and firm performance for a whole country. The paper gives insights for both academic scholars and practitioners, who may take the results into account in formulating an efficient personnel policy.
Original languageEnglish
JournalInternational Journal of Manpower
Volume29
Issue5
Pages (from-to)410-422
Number of pages13
ISSN0143-7720
Publication statusPublished - 2008

    Research areas

  • Company Performance, Age groups, Organizational structures, Demographics

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