The age-wage-productivity puzzle: evidence from the careers of top earners

Scarfe, R., Singleton, C. ORCID: https://orcid.org/0000-0001-8247-8830, Sunmoni, A. ORCID: https://orcid.org/0000-0003-3496-0168 and Telemo, P. (2024) The age-wage-productivity puzzle: evidence from the careers of top earners. Economic Inquiry, 62 (2). pp. 584-606. ISSN 1465-7295 doi: 10.1111/ecin.13191

Abstract/Summary

There is an inverted u-shaped relationship between age and wages in most labor markets, but the effects of age on productivity are often unclear. We use panel data in a market of high earners, professional footballers (soccer players) in North America, to estimate age-productivity and age-wage profiles. We find stark differences; wages increase for several years after productivity has peaked, before dropping sharply at the end of a career. This poses the question: why are middle-aged workers seemingly overpaid? We investigate a range of possible mechanisms that could be responsible, only finding evidence that tentatively supports a talent discovery theory.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/112960
Identification Number/DOI	10.1111/ecin.13191
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Uncontrolled Keywords	Labour productivity; Wages; Ageing; Sports Labour Markets
Publisher	Wiley
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