Demographics, Management Quality, And The US Productivity Slowdown

Topics:
Organization
Tags:
Dartmouth College,
Demographics,
Human Resources,
Workforce Management
Source:
Dartmouth College

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Overview: This paper looks at one possible mechanism for this relationship, the effect of demographics on management talent. This paper examines whether management changes caused by the entry of the baby boom into the workforce explain a portion of the US productivity slowdown in the 1970s. Using the Lucas model as a framework, a model of managers, workers and firms is calibrated and examined how changes in the observed age distribution of workers in the US affect productivity. The results suggest that the management effects of the baby boom may explain a 0.2-0.3 percentage point difference in growth rates between the 1970s and the 1990s. This represents about one quarter of the observed slowdown.

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Format: PDF | Size: 236KB | Date: Apr 2007 | Pages: 25

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