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Corporate Job Ladders in Europe: Wage Premia for University vs. High School Level Positions

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Author Info
Mellander, Erik () (The Research Institute of Industrial Economics)
Skedinger, Per () (The Research Institute of Industrial Economics)

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Abstract

Investment in human capital is a central issue in the literature on economic growth. The purpose of this study is to shed light on the economic incentives for investment in university education across countries. An empirical investigation of earnings for private-sector engineers and business administrators in seven European countries - Belgium, Denmark, France, Germany, Italy, Sweden and the United Kingdom - is presented. The analysis is based on a large micro-data set that is ideally suited for international comparisons. It contains information on earnings, age, occupation, responsibility level, industry and firm size. Standardized wage premia for university vs. high school level positions are computed for each country and field of work. The results indicate that the wage premia are higher for business administrators than for engineers in all the countries considered and that the premia for engineers are remarkably similar across countries. Aggregation over fields of work, which is not uncommon in studies on the returns to education, therefore seems to be questionable practice when comparing the returns in different countries.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 495.

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Length: 45 pages
Date of creation: 01 Mar 1998
Date of revision: 25 Aug 1999
Publication status: Forthcoming in Swedish Economic Policy Review, 1999.
Handle: RePEc:hhs:iuiwop:0495

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
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Web page: http://www.ifn.se/
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Related research
Keywords: Returns to education; Company wage policies;

Other versions of this item:

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Zvi Griliches, 1970. "Notes On The Role Of Education In Production Functions And Growth Accounting," NBER Chapters, in: Education, Income, and Human Capital, pages 71-128 National Bureau of Economic Research, Inc. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gunnarsson, Gudmundur & Mellanden, Erik & Savvidou, Eleni, 2004. "Human capital is the key to the IT productivity paradox," Working Paper Series 2004:13, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  2. Mellander, Erik & Savvidiou, Eleni & Gunnarsson, Gudmundur, 2001. "Is Human Capital the Key to the IT Productivity Paradox?," Working Paper Series 551, Research Institute of Industrial Economics. [Downloadable!]
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