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PreprintCited by 32Labor market dynamics and wage inequalityRetirement, Disability, and EmploymentEconomic Growth and Productivity

Age, Wage and Productivity

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van Ours, Jan C., Stoeldraijer, Lenny·2010·SSRN Electronic Journal
DOI 10.2139/ssrn.1554358
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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.

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  • Some employers are willing to hire older adults but at lower wages than older adults expect.

    “However, despite the potential fall in the productivity stemming from the hiring of aging workers, some employers are still willing to hire older adults, albeit for less money than the older adults may have expected (van Ours & Stoeldraijer, 2010).”

    From Policy Initiatives to Address the Challenges of an Older Population in the Workforce (2023) · cites this paper as van Ours & Stoeldraijer, 2010

  • In the Netherlands, most older people struggle to re-enter the job market because they consider offered wages too low.

    “In the Netherlands, for example, the majority of the older population is struggling to get back into the job market because they consider the wages they are being offered to be too low (van Ours & Stoeldraijer, 2010).”

    From Policy Initiatives to Address the Challenges of an Older Population in the Workforce (2023) · cites this paper as van Ours & Stoeldraijer, 2010

  • Employers believe older candidates' wage demands exceed their capability due to health status and obsolete knowledge or skills.

    “The employers have a different perspective: given the older workers’ health status and potential obsolescence of their knowledge and skills, they believe that the wages being demanded by older candidates do not reflect their capability (van Ours & Stoeldraijer, 2010).”

    From Policy Initiatives to Address the Challenges of an Older Population in the Workforce (2023) · cites this paper as van Ours & Stoeldraijer, 2010

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Related

Authors
van Ours, J. C., & Stoeldraijer, L.
Venue
SSRN Electronic Journal
Publisher
Elsevier BV
Published
2010
ISSN
1556-5068 (ISSN-L)
DOI
10.2139/ssrn.1554358
OpenAlex
W1503944657
Cited by
32
References
32
Citations by year
2025: 1 · 2022: 2 · 2021: 2 · 2020: 1 · 2019: 2 · 2018: 4 · 2017: 2 · 2016: 1 · 2015: 2 · 2014: 1 · 2013: 4
Type
posted content
Language
en
Open access
Locations
SSRN Electronic Journal (acceptedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Demography › Retirement, Disability, and Employment
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
age, wages, productivity, industrial workers, human capital

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