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Heterogeneity matters: labour productivity differentiated by age and skills
[La productivité du travail selon l’âge et selon les qualifications]

Author

Listed:
  • Muriel Roger

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, INSEE - Institut national de la statistique et des études économiques (INSEE), PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

  • Malgorzata Wasmer

    (UNIFR - Université de Fribourg = University of Fribourg, UL2 - Université Lumière - Lyon 2)

Abstract

This study aims at evaluating the actual profile of marginal productivity across age groups within the workforce. As age-productivity profiles might differ between occupations, we differentiate the workforce simultaneously by skills (low-skilled, highskilled) and by age (young, middle-aged, old). Estimating a production function with a nested constant-elasticity-of-substitution (CES) specification in labour allows imperfect substitution between different categories of workers. We use French datasets for manufacturing, services and trade sectors. Labour productivity is found to be the lowest for the low-skilled older workers while high-skilled senior employees in manufacturing and trade are the most productive group. Throughout the sectors, wage rates vary considerably less than productivity and wage profiles are steeper for highskilled workers. The relative productivity/wage ratio is found to be sector-specific. It is the highest for young workers in manufacturing while in services and trade it is the highest for the middle-age employees.

Suggested Citation

  • Muriel Roger & Malgorzata Wasmer, 2011. "Heterogeneity matters: labour productivity differentiated by age and skills [La productivité du travail selon l’âge et selon les qualifications]," Working Papers hal-05483880, HAL.
    • Handle: RePEc:hal:wpaper:hal-05483880
    Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05483880v1
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