Educational Spillovers at the Firm Level: Who Benefits from Whom?
Swiss Leading House Working Paper No. 65
22 Pages Posted: 9 Sep 2011
Date Written: August 1, 2011
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.
Keywords: education, informational spillovers, wages
JEL Classification: I20, J24, J30
Suggested Citation: Suggested Citation