The Age-Productivity Gradient: Evidence from a Sample of F1 Drivers
AbstractAging is a global phenomenon. If older individuals are less productive, an aging working population can lower aggregate productivity, economic growth and fiscal sustainability. Therefore, understanding the age-productivity gradient is key in a aging society. However, estimating the effect of aging on productivity is a daunting task. First, it requires clean measures of productivity. Wages are not such measures to the extent that they reward other workers attributes than their productivity. Second, unobserved heterogeneity at workers, firms and workers/firms level challenges the identification of the age-productivity gradient in cross-sectional data. Longitudinal data attenuate some identification issues, but give rise to the problem of partialling out the effect of aging from the pure effect of time. Third, the study of the age-productivity link requires investigating the role of experience and of seniority. We tackle these issues by focussing on a sample of Gran Prix Formula One drivers and show that the age-productivity link has an inverted U-shape profile, with a peak at around the age of 30-32.
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Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 226.
Date of creation: 01 May 2009
Date of revision:
Publication status: Published in Labour Economics, 2011, Volume 18, Issue 4, pp. 464-473
Aging; individual effects; firm effects; match effects; Formula One;
Other versions of this item:
- Castellucci, Fabrizio & Padula, Mario & Pica, Giovanni, 2011. "The age-productivity gradient: Evidence from a sample of F1 drivers," Labour Economics, Elsevier, vol. 18(4), pages 464-473, August.
- Fabrizio Castellucci & Mario Padula & Giovanni Pica, 2009. "The age-productivity gradient: evidence from a sample of F1 drivers," Working Papers 2009_16, Department of Economics, University of Venice "Ca' Foscari".
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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