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Ageing and employers' perceptions of labour costs and productivity: a survey among European employers

Conen, W.S. and Dalen van, H.P. and Henkens, C.J.I.M. (2012) Ageing and employers' perceptions of labour costs and productivity: a survey among European employers.

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Official URL: http://arno.uvt.nl/show.cgi?fid=122506

Abstract

Purpose: This paper examines employers’ perceptions of changes of the labour cost-productivity gap due to the ageing of the workforce, the effects of tenure wages and employment protect ion on the perceived gap and whether a perceived labour cost-productivity gap affects employers’ recruitment and retention behaviour towards older workers. Methodology: We analyze surveys administered to employers in Denmark, France, Germany, Italy, the Netherlands, Poland and Sweden. Findings: Approximately half of the employers associate the ageing of the personnel staff with a growing gap between labour costs and productivity. Both the presence of tenure wages and employment protection rules increase the probability that employers perceive a widening labour cost–productivity gap due to the ageing of their workforce. A counterfactual shows that even when employment protection and tenure wage systems are abolished 40 percent of the employers expect a net cost increase. The expected labour cost-productivity gap negatively affects both recruitment and retention of older workers. Originality: The wage-productivity gap is examined by the perceptions of employers using an international comparative survey. Keywords: older workers;labour costs;labour productivity;ageing;employers;tenure; seniority wages;retirement

Item Type:Report
Institutes:Ned. Interdisc. Demografisch Instituut (NIDI)
ID Code:12098
Deposited On:01 May 2012 02:00
Last Modified:06 Mar 2013 10:53

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