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Firm-Level Social Returns to Education

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  • Pedro S. Martins

Abstract

Do workers benefit from the education of their co-workers? We investigate this question drawing on a panel of large Portuguese firms and their workers, using fixed effects and instrumenting average schooling in each firm-year with its lagged value and the lagged share of retirement-age workers. We find evidence of substantial firm-level social returns (at about 19%), much larger than standard estimates of private returns to education, and of sizeable returns accruing to less educated workers but not to their more educated colleagues

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Bibliographic Info

Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0404.

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Date of creation: Feb 2004
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Handle: RePEc:san:crieff:0404

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Keywords: Social Returns to Education; Education Spillovers; Matched Employer-Employee Data; Wages; Portugal.;

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References

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Citations

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Cited by:
  1. Yeo Khee Yong & Toh Mun Heng & Shandre Mugan Thangavelu & James Wong, 2007. "Premium on Fields of Study: The Returns to Higher Education in Singapore," SCAPE Policy Research Working Paper Series, National University of Singapore, Department of Economics, SCAPE 0703, National University of Singapore, Department of Economics, SCAPE.
  2. Véronique Gille, 2012. "Education spillovers: empirical evidence in rural India," Indian Growth and Development Review, Emerald Group Publishing, Emerald Group Publishing, vol. 5(1), pages 4-24, April.
  3. De Fraja, Gianni, 2006. "Market and Public Provision in the Presence of Human Capital Externalities," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5471, C.E.P.R. Discussion Papers.
  4. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Pedro Martins & Francisco Lima, 2006. "External recruitments and firm performance," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(14), pages 911-915.
  6. Munch, Jakob Roland & Skaksen, Jan Rose, 2008. "Human capital and wages in exporting firms," Journal of International Economics, Elsevier, Elsevier, vol. 75(2), pages 363-372, July.
  7. Guillaume Destré & Louis Lévy-Garboua & Michel Sollogoub, 2008. "Learning from experience or learning from others? Inferring informal training from a human capital earnings function with matched employer–employee data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00304283, HAL.
  8. Anja Kuckulenz, 2006. "Wage and Productivity Effect of Continuing Training in Germany : A Sectoral Analysis," Working Papers of the Research Group Heterogenous Labor, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim 06-06, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  9. Uschi Backes-Gellner & Christian Rupietta & Simone N. Tuor, 2011. "Educational Spillovers at the Firm Level: Who Benefits from Whom?," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0065, University of Zurich, Institute for Strategy and Business Economics (ISU).
  10. Pedro Portugal, 2004. "Myths and Facts Regarding the Portuguese Labour Market - the Tragic Fate of College Graduates," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department, Banco de Portugal, Economics and Research Department.
  11. Floreani, Vincent Arthur, 2014. "Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives," MPRA Paper 55849, University Library of Munich, Germany.
  12. Yeo Khee Yong & Toh Mun Heng & Shandre Mugan Thangavelu & James Wong, 2007. "Premium on Fields of Study : The Returns to Higher Education in Singapore," Microeconomics Working Papers 21921, East Asian Bureau of Economic Research.
  13. Bratti, Massimiliano & Leombruni, Roberto, 2009. "Local Human Capital Externalities and Wages at the Firm Level: The Case of Italian Manufacturing," IZA Discussion Papers 4613, Institute for the Study of Labor (IZA).
  14. Michael Landesmann & Sebastian Leitner & Robert Stehrer & Terry Ward, 2009. "Skills and Industrial Competitiveness," wiiw Research Reports 356, The Vienna Institute for International Economic Studies, wiiw.
  15. Nils Braakmann, 2008. "Fields of training, plant characteristics and the gender wage gap in entry wages among skilled workers– Evidence from German administrative data," Working Paper Series in Economics 90, University of Lüneburg, Institute of Economics.
  16. Simone N. Tuor Sartore & Uschi Backes-Gellner, 2012. "Another Effect of Group Diversity: Educational Composition and Workers’ Pay," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0078, University of Zurich, Institute for Strategy and Business Economics (ISU).
  17. Rasmus Thönnessen & Erich Gundlach, 2013. "The size of human capital externalities: cross-country evidence," Public Choice, Springer, Springer, vol. 157(3), pages 671-689, December.
  18. Luca David Opromolla, 2013. "Trade and wage inequality," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department, Banco de Portugal, Economics and Research Department.

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