Wages, Productivity and Aging

In this article, we estimate age based wage and productivity differentials using linked employer-employee Canadian data from the Workplace and Employee Survey 1999-2003. Data on the firm side is used to estimate production functions taking into account the age profile of the firm's work-force. Data on the workers' side is used to estimate wage equations that also depend on age. Results show concave age-wage and age-productivity profiles. Wage-productivity comparisons show that the productivity of workers aged 55 and more with at least an undergraduate degree is lower than their wages. For other groups, we find that wages do not deviate significantly from productivity estimates.Wage determination, productivity, production function, linked employer-employee data

Wages, Productivity and Aging

In this article, we estimate age based wage and productivity differentials using linked employer-employee Canadian data from the Workplace and Employee Survey 1999-2003. Data on the firm side is used to estimate production functions taking into account the age profile of the firm’s workforce. Data on the workers’ side is used to estimate wage equations that also depend on age. Results show concave age-wage and age-productivity profiles. Wage-productivity comparisons show that the productivity of workers aged 55 and more with at least an undergraduate degree is lower than their wages. For other groups, we find that wages do not deviate significantly from productivity estimates.

A Competing Risks Analysis of the Determinants of Low Completion Rates in the Canadian Apprenticeship System

In this paper, we estimate the determinants of low (and slow) completion rates with a competing risk duration model using data from the National Apprenticeship Survey (NAS) 2007. This allows us to distinguish the impact age and duration dependence on the probability of dropping out. We find older apprentices are less likely to transit toward completion after age 28. We also find duration dependence to be positive, meaning transition probabilities to completion increase with apprenticeship duration. However, the positive effect dies out quickly after 10 years of apprenticeship.Apprenticeship training, human capital, competing risks model

Estimating the Returns to Firm-Sponsored on-the-Job and Classroom Training

In this paper, we estimate returns to classroom and on-the-job firm-sponsored training in terms of value-added per worker using longitudinal linked employee-employer Canadian data from 1999 to 2006. We estimate a standard production function controlling for endogenous training decisions because of perceived net benefits and time-varying market conditions using dynamic panel GMM methods. We find that employees who undertook classroom training are 11 percent more productive than otherwise similar employees. We show that returns to on-the-job training are on average lower (3.4 percent). We provide evidence that these lower returns are due to on-the-job training being more closely related to turnover and more geared toward subjects that are less productivity-enhancing.Productivity, Classroom training, On-the-Job training, Linked employer-employee data, Turnover, Subjects of training

Wages, Productivity and Aging

In this article, we estimate age based wage and productivity differentials using linked employer-employee Canadian data from the Workplace and Employee Survey 1999-2003. Data on the firm side is used to estimate production functions taking into account the age profile of the firmâs workforce. Data on the workersâ side is used to estimate wage equations that also depend on age. Results show concave age-wage and age-productivity profiles. Wage-productivity comparisons show that the productivity of workers aged 55 and more with at least an undergraduate degree is lower than their wages. For other groups, we find that wages do not deviate significantly from productivity estimates. Dans le présent article, nous évaluons les écarts de salaires et de productivité en fonction de lââge à lâaide de données canadiennes liées employeur-employé de lâEnquête sur le milieu de travail et les employés pour la période 1999-2003. Les données obtenues au sujet de lâentreprise ont servi à estimer des fonctions de production en tenant compte du profil dââge de son effectif. Les données concernant les employés ont été utilisées pour estimer des équations de salaires qui dépendent aussi de lââge. Les résultats révèlent des profils concaves dans les relations âge-salaire et âge-productivité. Les comparaisons des déterminants des salaires et de la productivité démontrent que la productivité des travailleurs de 55 ans et plus ayant au moins terminé des études de premier cycle est plus faible que leurs salaires. Pour ce qui est des autres groupes, nous constatons que les salaires ne dévient pas de façon statistiquement significative de la productivité.wage determination, productivity, production function, linked employer-employee data, fixation des salaires, productivité, fonction de production, données liées employeur-employé

Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training

In this paper, we estimate returns to classroom and on-the-job firm-sponsored training in terms of value-added per worker using longitudinal linked employee-employer Canadian data from 1999 to 2006. We estimate a standard production function controlling for endogenous training decisions because of perceived net benefits and time-varying market conditions using dynamic panel GMM methods. We find that employees who undertook classroom training are 11 percent more productive than otherwise similar employees. We show that returns to on-the-job training are on average lower (3.4 percent). We provide evidence that these lower returns are due to on-the-job training being more closely related to turnover and more geared toward subjects that are less productivity-enhancing.productivity, on-the-job training, classroom training, turnover, subjects of training

Organizational Redesign, Information Technologies and Workplace Productivity

Using a large longitudinal, nationally representative workplace-level dataset, we explore the productivity gains associated with computer use and organizational redesign. The empirical strategy involves the estimation of a production function, augmented to account for technology use and organizational design, correcting for unobserved heterogeneity. We find large returns associated with computer use. We also find that computer use and organizational redesign may be complements or substitutes in production, and that the productivity gains associated with organizational redesign are industry-specific.

New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data

In this paper, we provide new evidence on the determinants of absenteeism using the Workplace Employee Survey (WES) 1999-2002 from Statistics Canada. Our paper extends the typical labour-leisure model used to analyze the decision to skip work to include firm-level policy variables relevant to the absenteeism decision and uncertainty about the cost of absenteeism. It also provides a non-linear econometric model that explicitly takes into account the count nature of absenteeism data and unobserved heterogeneity at both the individual and firm level. Controlling for very detailed demographic, job and firm characteristics (including workplace practices), we find that dissatisfaction with contracted hours is a significant determinant of absence.Absenteeism; Linked Employer-Employee Data; Unobserved Heterogeneity; Count Data Models.

The Effect of Adversity on Process Innovations and Managerial Incentives

This paper asks whether adversity spurs the introduction of process innovations and increases the use of managerial incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous variation in adversity arising from increased border security along the 49th parallel following 9/11. Our longitudinal difference-in-differences estimates indicate that firms responded to adversity by introducing new or improved processes, but did not change their use of managerial incentives. These results suggest that the threat of bankruptcy may provide impetus for improving efficiency.

Estimating the effect of a change in insurance pricing regime on accidents with endogenous mobility.

In this paper, we estimate the impact of introducing a bonus-malus system on the probability of having automobile accidents, taking into account contract duration or the client mobility between insurers. We show that the new incentive scheme reduces accident rates of all policyholders when contract duration is taken into account, but does not affect accident rates of movers that shirk the imposed incentive effects of the new insurance pricing scheme.Bonus-malus; contract duration; automobile accident; Poisson distribution; right- and left-censoring; exponential distribution.