Faculty of Science, Technology and Medicine
Faculty of Law, Economics and Finance
Faculty of Humanities, Education and Social Sciences
Interdisciplinary Centre for Security, Reliability and Trust
Luxembourg Centre for Systems Biomedicine
Luxembourg Centre for Contemporary and Digital History
Luxembourg Centre for European Law
Luxembourg Centre for Socio-Environmental Systems
“Old Workers, New Capital” joint with Philippe d’Astous and Thomas Geelen
With the Lunch Seminar series, the Department of Finance is bringing eminent and up-and-coming researchers from around the world to Luxembourg.
Abstract
How does workforce aging affect corporate investment? We investigate this question using comprehensive matched employer-employee data. Exploiting variation in the age of newly hired workers, we find that firms hiring older workers significantly boost capital investment. Specifically, a one-year increase in the average age of new hires increases investment rates by 1.6 percentage points–a 13% increase relative to the sample mean. To establish causality, we implement a shift-share instrumental variable approach that leverages industry-level demographic trends interacted with firms’ initial workforce composition. Our results are consistent with a model where firms optimally choose between hiring younger and older workers who differ in productivity and wages.
About the speaker
Jakub Hajda is an Assistant Professor of Finance at HEC Montréal. His research interests include empirical and structural corporate finance, product markets, innovation and corporate governance.
Language
English.
This is a free event. Registration is mandatory.
Cold lunches are provided to registered participants only.