Wages, productivity and aging

Overview

Abstract (English)

In this article, we estimate age-based wage and productivity differentials using Canadian linked employer-employee data from the Workplace and Employee Survey 1999-2005. We use data at the workplace level to estimate production functions, taking into account the age profile of its workforce. Data on workers is used to estimate wage equations that also depend on age. Results show concave age-wage and age-productivity profiles. On average, we find that wages do not deviate significantly from productivity. For certain sub-groups, our results suggest some discrepancies between wages and productivity. This is the case for older workers with at least an undergraduate degree for whom productivity appears to be lower than their wages, while the reverse seems true for younger men. However, even in those cases, productivity differentials are too imprecise to draw any firm conclusions.

Abstract (French)

Please note that abstracts only appear in the language of the publication and might not have a translation.