Previous empirical studies on the effect of age on productivity and wages find contradicting results. Some studies find … that if workers grow older there is an increasing gap between productivity and wages, i.e. wages increase with age while …

Previous empirical studies on the effect of age on productivity and wages find contradicting results. Some studies find … that if workers grow older there is an increasing gap between productivity and wages, i.e. wages increase with age while …

wages to prevent them to quit. Similarly, workers with a high layoff probability give up some of their wage to prevent them … may be related to downward wage rigidity. While it is easy to renegotiate higher wages to prevent quits, it is much more … difficult to renegotiate lower wages to prevent layoffs even if that would overall be beneficial to the workers involved …