Another Effect of Group Diversity: Educational Composition and Workers’ Pay
AbstractDrawing 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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 0078.
Length: 41 pages
Date of creation: May 2012
Date of revision:
Knowledge spillovers; educational diversity; pay; work groups;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-EDU-2012-06-05 (Education)
- NEP-LAB-2012-06-05 (Labour Economics)
- NEP-URE-2012-06-05 (Urban & Real Estate Economics)
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.:
- Mas, Alexandre & Moretti, Enrico, 2006.
"Peers at Work,"
IZA Discussion Papers
2292, Institute for the Study of Labor (IZA).
- Martins, Pedro S., 2004.
"Firm-Level Social Returns to Education,"
IZA Discussion Papers
1382, Institute for the Study of Labor (IZA).
- Pedro S. Martins, 2004. "Firm-Level Social Returns to Education," CRIEFF Discussion Papers 0404, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Pedro S. Martins & Jim Jin, 2008. "Firm-Level Social Returns to Education," Working Papers 9, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2010. "Teams, Incentive Pay, and Productive Efficiency: Evidence From A Food-Processing Plant," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(4), pages 606-626, July.
- Rauch James E., 1993.
"Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities,"
Journal of Urban Economics,
Elsevier, vol. 34(3), pages 380-400, November.
- James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc.
- Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
- Harminder Battu & Clive R. Belfield & Peter J. Sloane, 2003. "Human Capital Spillovers within the Workplace: Evidence for Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 575-594, December.
- Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
- 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.
- Kirby, Simon & Riley, Rebecca, 2008. "The external returns to education: UK evidence using repeated cross-sections," Labour Economics, Elsevier, vol. 15(4), pages 619-630, August.
- 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.
- 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).
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Chris Sakellariou & Ramin Maysami, 2004. "Lucas type external effects of human capital: strong evidence using microdata," Applied Economics Letters, Taylor & Francis Journals, vol. 11(6), pages 343-346.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Rupietta).
If references are entirely missing, you can add them using this form.