Educational Spillovers at the Firm Level: Who Benefits from Whom?
AbstractThis paper examines spillover effects from education at the firm level, separating the effects for different levels and types of education and allowing for a curvilinear relationship. Modeling a Cobb-Douglas production function, we show that wages of tertiary-educated workers depend positively on the number of workers with an apprenticeship degree. These effects are the result of informational spillovers between differently educated workers. We estimate an aggregated Mincerian earnings equation using data from a large employer-employee survey and account for firm fixed effects as well as endogeneous workforce composition. Our results are highly significant and robust throughout our specifications and show that the number of workers with an apprenticeship degree has a positive impact on average wages of tertiary-educated workers but with a decreasing rate.
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Bibliographic InfoPaper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0065.
Length: 22 pages
Date of creation: Aug 2011
Date of revision:
Education; Informational Spillovers; Wages;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-EDU-2011-08-15 (Education)
- NEP-HRM-2011-08-15 (Human Capital & Human Resource Management)
- NEP-LAB-2011-08-15 (Labour Economics)
- NEP-LMA-2011-08-15 (Labor Markets - Supply, Demand, & Wages)
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