Perception of Older Workers’ Productivity: Focusing on the Statistic Discrimination and Contact Hypothesis

Abstract

This study examines older workers’ productivity from the perspective of statistical discrimination and contact hypothesis. The data is of 2,002 firms (nationwide) using the non-recursive model by AMOS. Analysis shows that older workers’ productivity is not as low as the stereotype suggested. The productivity of workers over 60 is 70.3% compared to workers in their 40s. Especially, the productivity of skilled workers over 60 is the highest among occupations. Further, the model states that the hiring of older workers has no reciprocal influence on the perception of older workers’ productivity. Thus, selection bias is not as serious as perceived. When firms employ older workers, despite ageism at the workplace, the evaluation of workers 60 and over is high. This evidence indicates that it is possible to reduce negative ageism at the workplace by increasing contact with older workers. Therefore, it is necessary to strengthen policies that improve productivity and work opportunities for those over 60.