Workforce composition and firm productivity: Evidence from Taiwan

Jin Tan Liu, Meng Wen Tsou, Ping Wang

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We study the relationship between workforce composition and firm productivity based on a new employee-employer-matched data set, using an array of workforce characteristics and three alternative measures of firm productivity. While firm age is not essential for the performance of firms, those of smaller size and those in the steel and transportation industries outperform others. Moreover, labor quality, particularly the middle-aged with higher education, contributes significantly to firms' productivity. Furthermore, economic incentives and market competition both play important roles in the performance of firms. Finally, there is an employer-size premium with larger firms paying higher wages and nonwage benefits. (JEL C33, D20, J30).

Original languageEnglish
Pages (from-to)1032-1047
Number of pages16
JournalEconomic Inquiry
Volume48
Issue number4
DOIs
StatePublished - Oct 2010

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