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Does corporate social responsibility make over-educated workers more productive?

Author

Listed:
  • R. Giuliano
  • B. Mahy
  • F. Rycx
  • G. Vermeylen

Abstract

This article provides first evidence on whether corporate social responsibility (CSR) influences the productivity effects of over-education. By relying on detailed Belgian-linked employer–employee panel data covering the period 1999–2010, our empirical results exhibit a positive and significant impact of over-education on firm productivity. Moreover, they suggest that the effect of over-education is positively enhanced when the firm implements a CSR process, especially when it aims to have: (i) a good match between job requirements and workers’ educational level, (ii) a diverse workforce in terms of gender and age, and (iii) a long-term relationship with its workers. When focussing on required education and over-education, the results suggest that CSR, besides representing an innovative and proactive approach for the firms’ stakeholders, may also be beneficial for the firm itself through a bigger increase in productivity for each additional year of required education or over-education.

Suggested Citation

  • R. Giuliano & B. Mahy & F. Rycx & G. Vermeylen, 2017. "Does corporate social responsibility make over-educated workers more productive?," Applied Economics, Taylor & Francis Journals, vol. 49(6), pages 587-605, February.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:6:p:587-605
    DOI: 10.1080/00036846.2016.1203061
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    Cited by:

    1. Romina Giuliano & Benoit Mahy & François Rycx & Guillaume Vermeylen, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," Working Papers CEB 24-009, ULB -- Universite Libre de Bruxelles.
    2. Roger C. Y. Chen & Chen-Hsun Lee, 2017. "The influence of CSR on firm value: an application of panel smooth transition regression on Taiwan," Applied Economics, Taylor & Francis Journals, vol. 49(34), pages 3422-3434, July.
    3. Romina Giuliano & Benoît Mahy & François Ryckx & Guillaume Vermeylen, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," LIDAM Discussion Papers IRES 2024003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Derek Kruse & Kristie Briggs & Eric J. Neuman, 2022. "Mitigating endogeneity in corporate social responsibility research: An investigation using a neoclassical production function," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 3-15, January.
    5. Galinato, Gregmar I. & Hyland, Marie & Islam, Asif M., 2022. "Does corporate social responsibility benefit society? Evidence from Latin America," Emerging Markets Review, Elsevier, vol. 53(C).
    6. Sarah Tiba & Frank J. van Rijnsoever & Marko P. Hekkert, 2019. "Firms with benefits: A systematic review of responsible entrepreneurship and corporate social responsibility literature," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(2), pages 265-284, March.

    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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