Aging and Productivity: Evidence from Piece Rates
نویسندگان
چکیده
We evaluate the e¤ects of aging on productivity using data from piece-rates. Our data contains the population of Finnish blue collar metal industry workers from years 1996-2000. A unique feature of the data is that we can observe the exact hours worked on piece-rates and time rates as well as earnings from both performance schemes. Moreover, a subset of workers receive both piece-rates and time rates within the same quarter. For these workers, we can directly compare the age pro le of hourly wages under piece-rate and time rate pay systems. The results show that productivity increases with age through most of the career. Productivity increase is initially faster than wage increase but after age 30 productivity increases at a slower rate than wages. Corresponding author. Address: Helsinki School of Economics, Department of Economics, Box 1210, 00101, Helsinki, Finland. email: tuomas.pekkarinen@hse. .
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