Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 436-460 |
| Journal | International Tax and Public Finance |
| Volume | 18 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2011 |
| Externally published | Yes |
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Are older workers overpaid? A literature review. / de Hek, Paul; van Vuuren, Daniël.
In: International Tax and Public Finance, Vol. 18, No. 4, 2011, p. 436-460.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - Are older workers overpaid? A literature review
AU - de Hek, Paul
AU - van Vuuren, Daniël
PY - 2011
Y1 - 2011
N2 - It is widely believed that wage and productivity profiles of individual workers do not coincide at all ages. We give an overview of the theories which provide a rationale for this, and discuss the empirical literature. Human capital theories typically imply that wages rise with tenure, so that job reallocation at old age would imply a wage cut. Incentive theories typically imply that wages exceed productivity at the end of a worker’s career. Bargaining power of unions may also lead to ‘overpayment’ of older workers. Some general conclusions regarding the wages of older workers are formulated on basis of the authors’ reading of the empirical literature.
AB - It is widely believed that wage and productivity profiles of individual workers do not coincide at all ages. We give an overview of the theories which provide a rationale for this, and discuss the empirical literature. Human capital theories typically imply that wages rise with tenure, so that job reallocation at old age would imply a wage cut. Incentive theories typically imply that wages exceed productivity at the end of a worker’s career. Bargaining power of unions may also lead to ‘overpayment’ of older workers. Some general conclusions regarding the wages of older workers are formulated on basis of the authors’ reading of the empirical literature.
U2 - 10.1007/s10797-011-9162-3
DO - 10.1007/s10797-011-9162-3
M3 - Article
VL - 18
SP - 436
EP - 460
JO - International Tax and Public Finance
JF - International Tax and Public Finance
SN - 0927-5940
IS - 4
ER -