Fabrizio Castellucci () (Bocconi University) Mario Padula () (Department of Economics, University Of Venice Cà Foscari) Giovanni Pica () (Department of Economics, University of Salerno)
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Estimating the effect of aging on productivity is a daunting task. First, it requires clean measures of productivity. Second, unobserved heterogeneity at workers, firms and workers/firms level challenges the identification of the age-productivity gradient in cross-sectional data. Finally, the study of the age-productivity link requires to partial out the role of experience and to account for the selection bias that arises if less able people drop out faster than more able ones. We tackle these issues by focussing on a panel 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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Paper provided by University of Venice "Ca' Foscari", Department of Economics in its series Working Papers with number
2009_16.
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