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Firm-Level Social Returns to Education

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  • Pedro S. Martins
  • Jim Jin

Abstract

Do workers benefit from the education of their co-workers? We examine this question first by introducing a model of learning, which argues that educated workers may transfer part of their general skills to uneducated workers, and then by examining detailed matched employer-employee panel data from Portugal. We find evidence of large firm-level social returns (between 14% and 23%), much larger than standard estimates of private returns, and of significant returns accruing to less educated workers but not to their more educated colleagues.

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Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number 9.

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Date of creation: May 2008
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Handle: RePEc:cgs:wpaper:9

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Keywords: Education Spillovers; Matched Employer-Employee Data; Endogenous Growth;

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References

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Citations

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Cited by:
  1. Munch, Jakob Roland & Skaksen, Jan Rose, 2008. "Human capital and wages in exporting firms," Journal of International Economics, Elsevier, Elsevier, vol. 75(2), pages 363-372, July.
  2. Véronique Gille, 2012. "Education spillovers: empirical evidence in rural India," Indian Growth and Development Review, Emerald Group Publishing, Emerald Group Publishing, vol. 5(1), pages 4-24, April.
  3. De Fraja, Gianni, 2006. "Market and Public Provision in the Presence of Human Capital Externalities," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5471, C.E.P.R. Discussion Papers.
  4. Guillaume Destré & Louis Lévy-Garboua & Michel Sollogoub, 2008. "Learning from experience or learning from others? Inferring informal training from a human capital earnings function with matched employer–employee data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00304283, HAL.
  5. Floreani, Vincent Arthur, 2014. "Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives," MPRA Paper 55849, University Library of Munich, Germany.
  6. Pedro Martins & Francisco Lima, 2006. "External recruitments and firm performance," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(14), pages 911-915.
  7. Pedro Portugal, 2004. "Myths and Facts Regarding the Portuguese Labour Market - the Tragic Fate of College Graduates," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department, Banco de Portugal, Economics and Research Department.
  8. Uschi Backes-Gellner & Christian Rupietta & Simone N. Tuor, 2011. "Educational Spillovers at the Firm Level: Who Benefits from Whom?," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0065, University of Zurich, Institute for Strategy and Business Economics (ISU).
  9. Rasmus Thönnessen & Erich Gundlach, 2013. "The size of human capital externalities: cross-country evidence," Public Choice, Springer, Springer, vol. 157(3), pages 671-689, December.
  10. Yeo Khee Yong & Toh Mun Heng & Shandre Mugan Thangavelu & James Wong, 2007. "Premium on Fields of Study: The Returns to Higher Education in Singapore," SCAPE Policy Research Working Paper Series 0703, National University of Singapore, Department of Economics, SCAPE.
  11. Anja Kuckulenz, 2006. "Wage and Productivity Effect of Continuing Training in Germany : A Sectoral Analysis," Working Papers of the Research Group Heterogenous Labor, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim 06-06, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  12. Simone N. Tuor Sartore & Uschi Backes-Gellner, 2012. "Another Effect of Group Diversity: Educational Composition and Workers’ Pay," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0078, University of Zurich, Institute for Strategy and Business Economics (ISU).
  13. Yeo Khee Yong & Toh Mun Heng & Shandre Mugan Thangavelu & James Wong, 2007. "Premium on Fields of Study : The Returns to Higher Education in Singapore," Microeconomics Working Papers 21921, East Asian Bureau of Economic Research.
  14. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. Nils Braakmann, 2008. "Fields of training, plant characteristics and the gender wage gap in entry wages among skilled workers– Evidence from German administrative data," Working Paper Series in Economics 90, University of Lüneburg, Institute of Economics.
  16. Luca David Opromolla, 2013. "Trade and wage inequality," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department, Banco de Portugal, Economics and Research Department.
  17. Michael Landesmann & Sebastian Leitner & Robert Stehrer & Terry Ward, 2009. "Skills and Industrial Competitiveness," wiiw Research Reports 356, The Vienna Institute for International Economic Studies, wiiw.
  18. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute for the Study of Labor (IZA).

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