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“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.

����ͷ�� the speaker

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.