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Age, Wage and Productivity

Author

Listed:
  • van Ours, Jan C.

    (Erasmus School of Economics)

  • Stoeldraijer, Lenny

    (Tilburg University)

Abstract
Previous empirical studies on the effect of age on productivity and wages find contradicting results. Some studies find that if workers grow older there is an increasing gap between productivity and wages, i.e. wages increase with age while productivity does not or does not increase at the same pace. However, other studies find no evidence of such an age related pay-productivity gap. We perform an analysis of the relationship between age, wage and productivity using a matched worker-firm panel dataset from Dutch manufacturing covering the period 2000-2005. We find little evidence of an age related pay-productivity gap.

Suggested Citation

  • van Ours, Jan C. & Stoeldraijer, Lenny, 2010. "Age, Wage and Productivity," IZA Discussion Papers 4765, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4765
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    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
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    More about this item

    Keywords

    wage; productivity; age;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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