Tuesday, May 12, 2026 12:00 - 13:00

SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH

About this event

How does demographic change impact the labour market? Although many papers look at this question, there is a tension in the literature. Some papers find that the age premium falls when young workers are scarce, while others argue that the age premium rises when old workers are abundant because they block young workers' career progression. I want to address this tension by connecting the market-level age premium to the role of age in the firm-level production function. I use microdata from the Netherlands to show that aging labour markets have caused the age premium to decline over the last 20 years. The decline is driven by younger firms raising the entry wages of young workers, whereas the sorting of young workers into higher-paying firms matters less. The age premium is most sensitive to the ratio between the youngest and oldest workers in a labour market. Informed by these results, I am planning to develop a framework of the role of age in a firm's production function.

Participants are expected to adhere to the CEP Events Code of Conduct.

Directions

This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.

The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.

Labour Economics Workshops are part of the CEP's Labour Markets programme.