Table 11 Estimates according to workers’ age (threshold = 40 yearsa), four educational categories
From: Does education raise productivity and wages equally? The moderating role of age and gender
GMM-SYS | LP | |||
|---|---|---|---|---|
Value added per hour worked (ln) | Wage cost per hour worked (ln) | Value added-wage cost gapc | Value added per hour worked (ln) | |
(1) | (2) | (3) | (4) | |
Lagged dependent variable (ln) | 0.666*** (0.055) | 0.477*** (0.136) | 0.616*** (0.045) | 0.787*** (0.043) |
Shares of workers | ||||
Young & primary education (YE1) | −0.165*** (0.062) | −0.060 (0.042) | −0.096** (0.044) | −0.021 (0.030) |
Older & primary education (OE1) | 0.044 (0.060) | 0.054 (0.042) | −0.025 (0.052) | −0.038 (0.033) |
Young & lower or upper secondary education (YE234) | Reference | Reference | Reference | Reference |
Older & lower or upper secondary education (OE234) | −0.027 (0.047) | 0.006 (0.032) | −0.050 (0.042) | −0.029 (0.027) |
Young & Bachelor’s or equivalent degree (YE5) | 0.130** (0.063) | 0.057 (0.047) | 0.074* (0.045) | 0.060* (0.032) |
Older & Bachelor’s or equivalent degree (OE5) | −0.045 (0.081) | 0.073 (0.071) | −0.050 (0.061) | −0.003 (0.036) |
Young & Master’s or equivalent degree or beyond (YE67) | 0.124 (0.078) | 0.132* (0.075) | 0.072 (0.049) | 0.201*** (0.046) |
Older & Master’s or equivalent degree or beyond (OE67) | 0.188** (0.087) | 0.421*** (0.123) | −0.006 (0.071) | 0.137** (0.061) |
Hansen over-identification test, p value | 0.474 | 0.402 | 0.606 | |
Arellano-Bond test for AR(2), p value | 0.124 | 0.287 | 0.217 | |
Number of observations | 6714 | 6714 | 6714 | 6691 |
Number of firms | 1844 | 1844 | 1844 | 1844 |
Chi-squared statistic for equality of regression coefficients, H0 | ||||
YE1 = OE1 | 4.19** | 2.65* | 0.82 | 0.10 |
YE1 = OE234 | 3.83* | 2.26 | 0.64 | 0.04 |
YE1 = YE5 | 13.53*** | 3.46* | 8.12*** | 2.78* |
YE1 = OE5 | 1.46 | 2.28 | 0.38 | 0.12 |
YE1 = YE67 | 7.92*** | 4.21* | 7.09*** | 15.52*** |
YE1 = OE67 | 9.93*** | 10.71*** | 1.05 | 4.85** |
OE1 = OE231 | 1.92 | 1.29 | 0.38 | 0.16 |
OE1 = YE5 | 1.04 | 0.00 | 2.19 | 5.11** |
OE1 = OE5 | 1.12 | 0.08 | 0.17 | 1.07 |
OE1 = YE67 | 0.84 | 1.25 | 1.98 | 19.38*** |
OE1 = OE67 | 2.27 | 10.51*** | 0.06 | 7.98*** |
OE234 = YE5 | 4.83** | 1.12 | 5.02** | 4.71** |
OE234 = OE5 | 0.06 | 0.87 | 0.00 | 0.62 |
OE234 = YE67 | 3.12* | 2.77* | 4.05** | 20.36*** |
OE234 = OE67 | 5.37** | 9.93*** | 0.34 | 7.62*** |
YE5 = OE5 | 2.83* | 0.04 | 2.47 | 1.60 |
YE5 = YE67 | 0.00 | 1.01 | 0.00 | 8.46*** |
YE5 = OE67 | 0.28 | 9.51*** | 0.78 | 2.08 |
OE5 = YE67 | 2.90* | 0.60 | 2.93* | 13.28*** |
OE5 = OE67 | 5.09** | 11.73*** | 0.29 | 4.63** |
YE67 = OE67 | 0.30 | 6.82*** | 0.71 | 0.91 |
Interpretationb | ||||
a) a) Among young workers | YE1 < YE234 YE234 < YE5 YE1 < YE5 YE1 < YE67 but YE234 = YE67 YE5 = YE67 | YE1 < YE5 YE1 < YE67 YE234 < YE67 but YE1 = YE234 YE234 = YE5 YE5 = YE67 | YE1 < YE234 YE1 < YE5 YE1 < YE67 YE234 < YE5 but YE234 = YE67 YE5 = YE67 | YE234 < YE5 YE5 < YE67 YE1 < YE5 YE1 < YE67 YE234 < YE67 but YE1 = YE234 |
⇒ Education increases productivity significantly | ⇒ High-educated significantly more costly | ⇒ Education increases profits significantly | ⇒ Education increases productivity significantly | |
a) b) Among older workers | OE5 < OE67 OE234 < OE67 but OE1 = OE67 OE1 = OE234 OE234 = OE5 | OE5 < OE67 OE1 < OE67 OE234 < OE67 but OE1 = OE234 OE234 = OE5 OE1 = OE5 | OE1 = OE234 OE1 = OE5 OE1 = OE67 OE234 = OE5 OE234 = OE67 OE5 = OE67 | OE5 < OE67 OE1 < OE67 OE234 < OE67 but OE1 = OE234 OE234 = OE5 OE1 = OE5 |
⇒ High-educated workers significantly more productive | ⇒ High-educated workers significantly more costly | ⇒ Education has no significant effect on profitability | ⇒ High-educated workers significantly more productive | |