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Wages, Productivity and Aging

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Benoit Dostie ()

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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.

Dans le présent article, nous évaluons les écarts de salaires et de productivité en fonction de l’âge à l’aide de données canadiennes liées employeur-employé de l’Enquête sur le milieu de travail et les employés pour la période 1999-2003. Les données obtenues au sujet de l’entreprise ont servi à estimer des fonctions de production en tenant compte du profil d’âge de son effectif. Les données concernant les employés ont été utilisées pour estimer des équations de salaires qui dépendent aussi de l’âge. Les résultats révèlent des profils concaves dans les relations âge-salaire et âge-productivité. Les comparaisons des déterminants des salaires et de la productivité démontrent que la productivité des travailleurs de 55 ans et plus ayant au moins terminé des études de premier cycle est plus faible que leurs salaires. Pour ce qui est des autres groupes, nous constatons que les salaires ne dévient pas de façon statistiquement significative de la productivité.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2007s-02.

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Date of creation: 01 Feb 2007
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Handle: RePEc:cir:cirwor:2007s-02

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Keywords: wage determination; productivity; production function; linked employer-employee data; fixation des salaires; productivité; fonction de production; données liées employeur-employé;

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  5. Fair, Ray C, 1994. "How Fast Do Old Men Slow Down?," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 103-18, February. [Downloadable!] (restricted)
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  13. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier. [Downloadable!] (restricted)
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  1. Fabrizio Castellucci & Mario Padula & Giovanni Pica, 2009. "The age-productivity gradient: evidence from a sample of F1 drivers," Working Papers 2009_16, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
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  2. Katharina Frosch, 2009. "Do only new brooms sweep clean? A review on workforce age and innovation," MPIDR Working Papers WP-2009-005, Max Planck Institute for Demographic Research, Rostock, Germany. [Downloadable!]
  3. van Ours, Jan C., 2009. "Will You Still Need Me – When I'm 64?," IZA Discussion Papers 4264, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Gielen, A. C., 2007. "Performance Pay, Training and Labor Mobility," Discussion Paper 2007-48, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  5. Benoit Dostie & Pierre Thomas Léger, 2008. "Une analyse des déterminants de l’incidence et de l’intensité de la formation des travailleurs québécois selon l’âge et comparaison avec l’Ontario," CIRANO Working Papers 2008s-23, CIRANO. [Downloadable!]
  6. Thierry Lallemand & François Rycx, 2008. "Are young and old workers harmful for firm productivity?," Working Papers DULBEA 09-02.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  7. Montizaan Raymond & Coervers Frank & Grip Andries de, 2007. "Training and early Retirement," Research Memoranda 002, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
  8. Uschi Backes-Gellner & Stephan Veen, 2007. "Aging Workforces and Challenges to Human Resource Management in German Firms," Working Papers 0079, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
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