Productivity of older employees in comparison to other age groups: a cross-country analysis

Abstract

The main aim of the paper was to estimate the impact of older employees aged 55-74 on productivity compared with other age groups. The research (foundation of the paper) was conducted in 72 countries in the period 2000-2021. Countries were divided into three groups composed of 24 economies according to their GDP pc in 2021, i.e. the lowest GDP pc, the middle GDP pc, and the highest GDP pc countries. The study covered the five age and sex groups of employees: 25-34, 35-44, 45-54, 55-64, and 65-74. The Productive Capacities Index (PCI) built by UNCTAD and its selected categories were assumed to be dependent variables. The research results obtained for three groups of countries indicate that older employees had stronger positive impact on improving PCI than younger employees, especially on human capital development and private sector productivity. Our outcomes also suggest that older employees are better integrated than younger age groups with ICT tools that increase work productivity. To sum up, we can state that older employees can be a key factor in economic development due to their knowledge and experience, provided that others are willing to learn from them and they receive relevant organizational support.