Does Employing Older Workers Affect Workplace Performance?

Abstract

Using a panel of workplaces in Britain, we investigate the implications for businesses of employing older workers. Workplace labor productivity falls where the proportion of older or younger workers rises. These raw associations are attenuated somewhat after controlling for aspects of human capital. In contrast, there is no significant association between age shares and workplace financial performance, suggesting that any reluctance by employers to employ greater numbers of older workers may be misplaced.

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