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Firm-Level Social Returns to Education

  • Pedro S. Martins
  • Jim Jin

Do workers benefit from the education of their co-workers? We examine this question first by introducing a model of learning, which argues that educated workers may transfer part of their general skills to uneducated workers, and then by examining detailed matched employer-employee panel data from Portugal. We find evidence of large firm-level social returns (between 14% and 23%), much larger than standard estimates of private returns, and of significant returns accruing to less educated workers but not to their more educated colleagues.

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File URL: http://webspace.qmul.ac.uk/pmartins/CGRWP09.pdf
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Paper provided by Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research in its series Working Papers with number 9.

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Date of creation: May 2008
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Handle: RePEc:cgs:wpaper:9
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