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Wages, Productivity and Aging

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  • Benoit Dostie

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.
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  • Benoit Dostie, 2007. "Wages, Productivity and Aging," CIRANO Working Papers 2007s-02, CIRANO.
  • Handle: RePEc:cir:cirwor:2007s-02
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    More about this item

    Keywords

    wage determination; productivity; production function; linked employer-employee data; fixation des salaires; productivité; fonction de production; données liées employeur-employé;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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