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Another Effect of Group Diversity: Educational Composition and Workers’ Pay

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  • Simone N. Tuor Sartore

    ()
    (University of Zurich, Department of Business Administration)

  • Uschi Backes-Gellner

    ()
    (University of Zurich, Department of Business Administration)

Abstract

Drawing on an unusually large set of employer-employee data, we examine how workers’ pay is related to the educational composition within their occupational group. We find that educational composition as measured by the educational diversity and the educational level of an occupational group is positively related to its workers’ pay within that group. In addition, our findings suggest that the educational level moderates the positive effect of educational diversity, i.e. that pay increases related to diversity are higher in occupational groups with higher levels of education. We also discuss implications for management practice and possible further theoretical developments.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0078_lhwpaper.pdf
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Bibliographic Info

Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0078.

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Length: 41 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iso:educat:0078

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Keywords: Knowledge spillovers; educational diversity; pay; work groups;

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  1. Mas, Alexandre & Moretti, Enrico, 2006. "Peers at Work," IZA Discussion Papers 2292, Institute for the Study of Labor (IZA).
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  8. Simon Kirby & Rebecca Riley, 2007. "The external returns to education: UK evidence using repeated cross-sections," NIESR Discussion Papers 291, National Institute of Economic and Social Research.
  9. Ennen, Edgar & Richter, Ansgar, 2009. "The Whole Is More Than the Sum of Its Parts - Or Is It? A Review of the Empirical Literature on Complementarities in Organizations," MPRA Paper 15666, University Library of Munich, Germany.
  10. Uschi Backes-Gellner & Stephan Veen, 2007. "Aging Workforces and Challenges to Human Resource Management in German Firms," Working Papers 0079, University of Zurich, Institute for Strategy and Business Economics (ISU).
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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