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Does education raise productivity and wages equally? The moderating role of age and gender

Author

Listed:
  • Stephan Kampelmann
  • François Rycx
  • Yves Saks
  • Ilan Tojerow

Abstract

We estimate the impact of education on productivity, wage costs and productivity-wage gaps (i.e. profits) using Belgian linked panel data. Findings highlight that educational credentials have a stronger impact on productivity than on wage costs. Firms’ profitability is found to rise when lower educated workers are substituted by higher educated ones. This effect is found to be more pronounced among younger workers and women. Findings thus suggest that the productivity to wage cost ratio of low-educated workers is detrimental to their employability, especially when young or female. They also support the existence of a glass ceiling on women’s career development.

Suggested Citation

  • Stephan Kampelmann & François Rycx & Yves Saks & Ilan Tojerow, 2018. "Does education raise productivity and wages equally? The moderating role of age and gender," ULB Institutional Repository 2013/267087, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/267087
    Note: SCOPUS: ar.j
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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