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Educational Spillovers at the Firm Level: Who Benefits from Whom?Uschi Backes-GellnerUniversity of Zurich - Institute for Business Administration; Swiss Leading House Christian RupiettaUniversity of Zurich - Department of Business Administration (IBW); University of Zurich - Economics of Education, Firm Behaviour and Training Policies Simone N. Tuor SartoreUniversity of Zurich - Department of Business Administration; University of Zurich - Economics of Education, Firm Behaviour and Training Policies August 1, 2011 Swiss Leading House Working Paper No. 65 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.
Number of Pages in PDF File: 22 Keywords: education, informational spillovers, wages JEL Classification: I20, J24, J30 working papers seriesDate posted: September 9, 2011Suggested CitationContact Information
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