New technologies, workplace organisation and the age structure of the workforce : firm-level evidence

Abstract

This paper investigates the relationships between new technologies, innovative workplace practices and the age structure of the workforce in a sample of French manufacturing firms. We find evidence that the wage bill share of older workers is lower in innovative firms and that the opposite holds for younger workers. This age bias is also evidenced within occupational groups, thus suggesting that skills do not completely protect workers against the labour market consequences of ageing. More detailed analysis of employment inflows and outflows shows that new technologies essentially affect older workers through reduced hiring opportunities, whereas organisational innovations mainly increase their probability of exit. This suggests that some skill obsolescence may be at work in our sample.