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Ageing of the Workforce and Wages—Does the Type of Occupation Matter?

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  • Aleksandra Majchrowska
  • Paulina Broniatowska

Abstract

We analyze the relationship between ageing of the workforce and average wages. We use data from the Structure of Earnings Survey and analyze hourly wages across nine major occupational groups in 27 EU economies in 2002–2014. We confirm a significant relationship between the share of workers aged 50 years and older and wages. In the whole sample the sign of this relationship is negative, however, it differs across occupational groups and over time. In groups with constant investment in human capital wages increase with age. In groups in which physical strength is more important, productivity and wages decrease with age.

Suggested Citation

  • Aleksandra Majchrowska & Paulina Broniatowska, 2019. "Ageing of the Workforce and Wages—Does the Type of Occupation Matter?," Eastern European Economics, Taylor & Francis Journals, vol. 57(4), pages 331-348, July.
    • Handle: RePEc:mes:eaeuec:v:57:y:2019:i:4:p:331-348
    DOI: 10.1080/00128775.2019.1620615
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