Wages, Productivity and Aging

32 Pages Posted: 9 Jan 2007

See all articles by Benoit Dostie

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

Date Written: December 2006

Abstract

In this article, we estimate age based wage and productivity differentials using linked employer-employee Canadian data from the Workplace and Employee Survey 1999-2003. Data on the firm side is used to estimate production functions taking into account the age profile of the firm's workforce. Data on the workers' side is used to estimate wage equations that also depend on age. Results show concave age-wage and age-productivity profiles. Wage-productivity comparisons show that the productivity of workers aged 55 and more with at least an undergraduate degree is lower than their wages. For other groups, we find that wages do not deviate significantly from productivity estimates.

Keywords: wage determination, productivity, production function, linked employer-employee data

JEL Classification: J31

Suggested Citation

Dostie, Benoit, Wages, Productivity and Aging (December 2006). IZA Discussion Paper No. 2496, CIRANO - Scientific Publications, 2007s-02, Available at SSRN: https://ssrn.com/abstract=955811

Benoit Dostie (Contact Author)

HEC Montreal - Institute of Applied Economics ( email )

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IZA Institute of Labor Economics

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