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Another Effect of Group Diversity: Educational Composition and Workers’ Pay


  • Simone N. Tuor Sartore

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

  • Uschi Backes-Gellner

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


Drawing 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.

Suggested Citation

  • Simone N. Tuor Sartore & Uschi Backes-Gellner, 2012. "Another Effect of Group Diversity: Educational Composition and Workers’ Pay," Economics of Education Working Paper Series 0078, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:iso:educat:0078

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    References listed on IDEAS

    1. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-145, March.
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    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    More about this item


    Knowledge spillovers; educational diversity; pay; work groups;

    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 - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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