under the assumption of homogeneous productivity among workers, firms tend to fire older workers more often than young ones, when deciding whether to update or not a technology: there is an equilibrium where the creative destruction effect dominates over the capitalization effect for old workers, whereas the capitalization effect dominates for young workers. This discrimination against older workers can be moderated when we introduce heterogeneity (in terms of productivity) among workers.Source: Institute for the Study of Labor Discussion Paper 3841 Abstract (November 2008)
Aging Workforce News is an enhanced news site and blog tracking developments, tools, and resources for managing older workers and boomers in the workplace.
Sunday, November 30, 2008
Research: Relationship of Age and Unemployment
The Institute for the Study of Labor has published a paper seeking "to gain insights on the relationship between growth and unemployment, when considering heterogeneous agents in terms of age." According to the authors (François Langot and Eva Moreno-Galbis) of "Does the Growth Process Discriminate against Older Workers?":
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment