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Educational Spillovers at the Firm Level: Who Benefits from Whom?

Author

Listed:
  • Uschi Backes-Gellner

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

  • Christian Rupietta

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

  • Simone N. Tuor

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

Abstract

This paper examines spillover effects from education at the firm level, separating the effects for different levels and types of education and allowing for a curvilinear relationship. Modeling a Cobb-Douglas production function, we show that wages of tertiary-educated workers depend positively on the number of workers with an apprenticeship degree. These effects are the result of informational spillovers between differently educated workers. We estimate an aggregated Mincerian earnings equation using data from a large employer-employee survey and account for firm fixed effects as well as endogeneous workforce composition. Our results are highly significant and robust throughout our specifications and show that the number of workers with an apprenticeship degree has a positive impact on average wages of tertiary-educated workers but with a decreasing rate.

Suggested Citation

  • 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 0065, University of Zurich, Department of Business Administration (IBW), revised Feb 2015.
  • Handle: RePEc:iso:educat:0065
    as

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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0065_lhwpaper.pdf
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    References listed on IDEAS

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    4. Pedro Martins & Jim Jin, 2010. "Firm-level social returns to education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 539-558, March.
    5. Aniela Wirz, 2008. "Private returns to education versus education spill-over effects," Empirical Economics, Springer, vol. 34(2), pages 315-342, March.
    6. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    7. Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 569-582.
    8. 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.
    9. 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.
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    12. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    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. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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    More about this item

    Keywords

    Education; Informational Spillovers; Wages;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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