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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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    Cited by:

    1. V. Jacobs & F. Rycx & M. Volral, 2022. "Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics," De Economist, Springer, vol. 170(4), pages 459-501, November.
    2. Ermias Debie & Amare Wubishet Ayele, 2023. "Perceived Determinants of Smallholder Households’ Resilience to Livelihood Insecurity in Goncha District, Northwest Highlands of Ethiopia," SAGE Open, , vol. 13(3), pages 21582440231, July.
    3. Diego De la Fuente Stevens, 2025. "Compulsory Schooling and Long-Term Outcomes: Evidence from a Nationwide Education Reform in Mexico," Working Paper Series 0525, Department of Economics, University of Sussex Business School.
    4. Benoît Mahy & François Rycx & Guillaume Vermeylen & Mélanie Volral, 2022. "Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2222-2250, July.
    5. Benoît Mahy & François Rycx & Guillaume Vermeylen & Mélanie Volral, 2018. "Productivity, wages and profits: Does firms’ position in the value chain matter?," Working Paper Research 358, National Bank of Belgium.
    6. Olalekan Charles Okunlola & Imran Usman Sani & Olumide Abiodun Ayetigbo & Olajide O. Oyadeyi, 2024. "Effect of government expenditure on real economic growth in ECOWAS: assessing the moderating role of corruption and conflict," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    7. Ujjaini Mukhopadhyay, 2021. "Differential Education Subsidy Policy and Wage Inequality Between Skilled, Semi-skilled and Unskilled Labour: A General Equilibrium Approach," Review of Development and Change, , vol. 26(1), pages 40-62, June.
    8. Eleonora Bartoloni & Andrea Marino & Maurizio Baussola & Davide Romaniello, 2023. "Urban Non-urban Agglomeration Divide: Is There a Gap in Productivity and Wages?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 789-827, July.
    9. Saifan Abdulloh Muqimuddin & Benedictus Raksaka Mahi, 2025. "An Analysis of the Impact of Digipay Utilization on the Expenditure Efficiency of Central Government Work Units," Indonesian Treasury Review: Jurnal Perbendaharaan, Keuangan Negara dan Kebijakan Publik, Direktorat Jenderal Perbendaharaan, Kementerian Keuangan, vol. 10(3), pages 206-217.
    10. Stephan Kampelmann & François Rycx & Yves Saks & Ilan Tojerow, 2018. "Does education raise productivity and wages equally? The moderating role of age and gender," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-37, December.
    11. Kelin, Ema & Istenič, Tanja & Sambt, Jože, 2023. "The role of educational attainment in production and transfers in the form of unpaid household work," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    12. Valentine Jacobs, 2021. "Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics," DULBEA Working Papers 23562, ULB -- Universite Libre de Bruxelles.
    13. Brian Tavonga Mazorodze & Harris Maduku, 2024. "Does Education Help Local Economies Reach Economic Potential? Evidence from South Africa," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 10(1), pages 57-86, January.
    14. Ruba Abdullah Aljarallah, 2020. "The Economic Impacts of Natural Resource Dependency in Gulf Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 36-52.
    15. Nicola Gagliardi & Benoît Mahy & François Rycx, 2018. "Upstreamness, social upgrading and gender: Equal benefits for all?," Working Paper Research 359, National Bank of Belgium.
    16. Lai, Jinming & Ke, Jinjun & Lin, Shuping & Zhang, Pengdong & Zhang, Qihao, 2024. "Business environment optimization and labor income share of enterprises: Evidence from China," Research in International Business and Finance, Elsevier, vol. 71(C).
    17. Valentine Fays & Benoît Mahy & François Rycx, 2023. "Wage differences according to workers' origin: The role of working more upstream in GVCs," LABOUR, CEIS, vol. 37(2), pages 319-342, June.
    18. Louise Devos & Louis Lippens & Dries Lens & François Rycx & Mélanie Volral & Stijn Baert, 2025. "Labour Market Disadvantages of Citizens with a Migration Background in Belgium: A Systematic Review," De Economist, Springer, vol. 173(1), pages 121-175, March.
    19. Coronel Vicente J. & Díaz-Roldán Carmen, 2024. "Government Expenditure, Education, and Productivity in the European Union: Effects on Economic Growth," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-24.
    20. Ruohan Wu, 2023. "COVID‐19's impacts on business activities and female workers: Empirical evidence from global developing economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(1), pages 163-197, January.
    21. Maria-Simona NAROȘ & Mihaela SIMIONESCU, 2018. "The role of life-long education in achieving sustainable development," Institute for Economic Forecasting Conference Proceedings 180501, Institute for Economic Forecasting.

    More about this item

    Keywords

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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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