by Benoit Dostie.
This document is available only in French.
In this article, we estimate workers' pay/productivity spread by age, using data from Statistics Canada's 1999–2002 Workplace and Employee Survey. This longitudinal survey takes in data from both businesses and their workers. Data on businesses are used to estimate production functions in order to rate the relative productivity of workers in different age ranges. Data on workers are used to compute pay equations, again on the basis of age. Our results show that pay/productivity profiles by age are generally concave and that the productivity of workers age 55 and older declines more rapidly than their pay.