Corporate Job Ladders in Europe: Wage Premia for University vs. High School Level Positions
AbstractInvestment 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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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 495.
Length: 45 pages
Date of creation: 01 Mar 1998
Date of revision: 25 Aug 1999
Publication status: Forthcoming in Swedish Economic Policy Review, 1999.
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More information through EDIRC
Returns to education; Company wage policies;
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
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.:
- 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.
- Charles Brown & James L. Medoff, 1989.
"The Employer Size-Wage Effect,"
NBER Working Papers
2870, National Bureau of Economic Research, Inc.
- Gunnarsson, Gudmundur & Mellander, Erik & Savvidou, Eleni, 2004. "Human capital is the key to the IT productivity paradox," Working Paper Series 2004:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- 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.
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