 Threat or opportunity? Unveiling the impact of population aging on corporate labor investment efficiencyDequan Jiang, Meng Lan, Weiping Li and Yongjian Shen Pacific-Basin Finance Journal, 2024, vol. 85, issue C Abstract: This study examines the impact of population aging on labor investment efficiency in Chinese listed firms from 2009 to 2020. Our main findings reveal that aging can positively influence labor investment efficiency, particularly in firms with labor redundancies such as state-owned enterprises, those with labor unions, high labor costs, and financial constraints. The positive effect is lessened in regions with abundant human capital, within the manufacturing sector, and labor-intensive industries. The results show that improvements in labor efficiency are distinct from changes in capital investment efficiency, indicating no general rebalancing of resources due to demographic shifts. Firms with limited investment opportunities and under strict external monitoring benefit more from an aging workforce. Overall, our findings suggest that an aging population can offer opportunities for firms to enhance labor investment efficiency, challenging the conventional view of population aging as solely a threat. Keywords: Population aging; Labor investment efficiency; Labor redundancy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x24000738 DOI: 10.1016/j.pacfin.2024.102322 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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