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 gapb | Value added per hour worked (ln) | |
(1) | (2) | (3) | (4) | |
Lagged dependent variable (ln) | 0.664*** (0.056) | 0.462*** (0.135) | 0.627*** (0.043) | 0.786*** (0.042) |
Shares of workers | ||||
Female & primary education (FE1) | −0.131* (0.070) | −0.093 (0.058) | −0.031 (0.048) | −0.081*** (0.030) |
Male & primary education (ME1) | 0.028 (0.054) | 0.076* (0.043) | −0.129* (0.072) | 0.005 (0.020) |
Female & lower or upper secondary education (FE234) | Reference | Reference | Reference | Reference |
Male & lower or upper secondary education (ME234) | 0.037 (0.053) | 0.062 (0.039) | −0.104 (0.065) | 0.003 (0.016) |
Female & Bachelor’s or equivalent degree (FE5) | 0.141* (0.073) | 0.069 (0.071) | 0.125* (0.064) | 0.069* (0.036) |
Male & Bachelor’s or equivalent degree (ME5) | 0.048 (0.069) | 0.107* (0.055) | −0.138* (0.079) | 0.037 (0.032) |
Female & Master’s or equivalent degree or beyond (FE67) | 0.156 (0.121) | 0.182 (0.121) | 0.087 (0.075) | 0.212** (0.090) |
Male & Master’s or equivalent degree or beyond (ME67) | 0.172** (0.074) | 0.339*** (0.092) | −0.093 (0.081) | 0.184*** (0.035) |
Hansen over-identification test, p value | 0.373 | 0.297 | 0.209 | |
Arellano-Bond test for AR(2), p value | 0.125 | 0.289 | 0.561 | |
Number of observations | 6714 | 6714 | 6714 | 6691 |
Number of firms | 1844 | 1844 | 1844 | 1844 |
Chi-squared statistic for equality of regression coefficients, H0 | ||||
FE1 = ME1 | 4.01** | 6.13** | 1.12 | 7.17*** |
FE1 = ME234 | 5.95** | 7.07*** | 0.80 | 9.45*** |
FE1 = FE5 | 8.80*** | 3.42* | 5.23** | 13.61*** |
FE1 = ME5 | 4.63** | 7.89*** | 1.25 | 7.65*** |
FE1 = FE67 | 4.09** | 3.98** | 1.94 | 9.56*** |
FE1 = ME67 | 11.08*** | 16.81*** | 0.37 | 35.21*** |
ME1 = ME234 | 0.09 | 0.33 | 0.83 | 0.01 |
ME1 = FE5 | 1.92 | 0.01 | 6.13* | 3.03* |
ME1 = ME5 | 0.10 | 0.35 | 0.03 | 0.91 |
ME1 = FE67 | 0.97 | 0.84 | 3.77* | 5.79** |
ME1 = ME67 | 4.04** | 10.51*** | 0.46 | 20.59*** |
ME234 = FE5 | 1.75 | 0.01 | 6.09** | 3.88** |
ME234 = ME5 | 0.03 | 0.85 | 0.53 | 1.27 |
ME234 = FE67 | 0.84 | 1.09 | 3.19* | 5.76** |
ME234 = ME67 | 3.72* | 11.29*** | 0.04 | 26.1*** |
FE5 = ME5 | 0.98 | 0.27 | 5.39* | 0.57 |
FE5 = FE67 | 0.01 | 0.86 | 0.17 | 1.94 |
FE5 = ME67 | 0.10 | 10.29*** | 3.62* | 8.63*** |
ME5 = FE67 | 0.64 | 0.50 | 3.68* | 3.96** |
ME5 = ME67 | 2.19 | 11.15*** | 0.59 | 15.5*** |
FE67 = ME67 | 0.01 | 2.16 | 2.17 | 0.09 |
Interpretationa | ||||
a) a) Among male workers | ME1 < ME67 ME234 < ME67 but ME1 = ME234 ME234 = ME5 ME5 = ME67 ME1 = ME5 | ME1 < ME67 ME234 < ME67 ME5 < ME67 but ME1 = ME234 ME1 = ME5 ME234 = ME5 | ME1 = ME234 ME1 = ME5 ME1 = ME67 ME234 = ME5 ME234 = ME67 ME5 = ME67 | ME234 < ME67 ME1 < ME67 ME5 < ME67 but ME1 = ME234 ME234 = ME5 ME1 = ME5 |
⇒ ME67 significantly more productive than ME1 and ME234 | ⇒ ME67 more costly than other educational groups | ⇒ Education has no significant effect on profitability | ⇒ ME67 significantly more productive than lower-educated workers | |
a) b) Among female workers | FE1 < FE234 FE234 < FE5 FE1 < FE5 FE1 < FE67 but FE5 = FE67 FE234 = FE67 | FE1 < FE67 FE1 < FE5 but FE1 = FE234 FE234 = FE5 FE234 = FE67 FE5 = FE67 | FE1 < FE5 FE1 < FE67 FE234 < FE5 but FE1 = FE234 FE234 = FE67 FE5 = FE67 | FE1 < FE234 FE234 < FE5 FE234 < FE67 FE1 < FE5 FE1 < FE67 but FE5 = FE67 |
⇒ Education increases productivity significantly | ⇒ FE67 and FE5 significantly more costly than FE1 | ⇒ FE67 and FE5 significantly more profitable than FE1 | ⇒ Education increases productivity significantly |