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) | 0.659*** (0.058) | 0.465*** (0.138) | 0.614*** (0.047) | 0.792*** (0.043) |
Shares of workersa | ||||
Young low-educated (YE12) | Reference | Reference | Reference | Reference |
Older low-educated (OE12) | −0.028 (0.055) | −0.010 (0.039) | −0.034 (0.046) | −0.026 (0.032) |
Young middle-educated (YE34) | 0.046 (0.044) | 0.004 (0.022) | 0.040 (0.043) | −0.017 (0.022) |
Older middle-educated (OE34) | 0.039 (0.047) | 0.059* (0.034) | −0.033 (0.043) | 0.035 (0.022) |
Young high-educated (YE567) | 0.158*** (0.058) | 0.096** (0.048) | 0.093** (0.045) | 0.120*** (0.033) |
Older high-educated (OE567) | 0.080 (0.069) | 0.235*** (0.080) | −0.029 (0.056) | 0.106*** (0.036) |
Hansen over-identification test, p value | 0.451 | 0.238 | 0.799 | |
Arellano-Bond test for AR(2), p value | 0.132 | 0.306 | 0.224 | |
Number of observations | 6714 | 6714 | 6714 | 6691 |
Number of firms | 1844 | 1844 | 1844 | 1844 |
Chi-squared statistic for equality of regression coefficients, H0 | ||||
OE12 = YE34 | 1.94 | 0.17 | 2.58 | 0.13 |
OE12 = OE34 | 2.14 | 5.14** | 0.00 | 5.27** |
OE12 = YE567 | 8.62*** | 4.21** | 6.38** | 20.39*** |
OE12 = OE567 | 2.36 | 7.73*** | 0.01 | 11.25*** |
YE34 = OE34 | 0.01 | 2.22 | 1.43 | 2.96* |
YE34 = YE567 | 4.68** | 3.48* | 1.94 | 17.51*** |
YE34 = OE567 | 0.22 | 7.58*** | 1.26 | 8.87*** |
OE34 = YE567 | 3.01* | 0.64 | 4.34** | 9.34*** |
OE34 = OE567 | 0.36 | 5.33** | 0.01 | 4.62** |
YE567 = OE567 | 0.91 | 3.88** | 3.11* | 0.19 |
Interpretationb | ||||
a) Among young workers | YE12 < YE567 YE34 < YE567 but YE12 = YE34 | YE12 < YE567 YE34 < YE567 but YE12 = YE34 | YE12 < YE567 but YE12 = YE34 YE34 = YE567 | YE12 < YE567 YE34 < YE567 but YE12 = YE34 |
⇒ YE567 significantly more productive than YE34 and YE12 | ⇒ YE567 significantly more costly than YE34 and YE12 | ⇒ YE567 significantly more profitable than YE12 | ⇒ YE567 significantly more productive than YE34 and YE12 | |
a) b) Among older workers | OE12 = OE34 OE12 = OE567 OE34 = OE567 | OE12 < OE34 OE34 < OE567 OE12 < OE567 | OE12 = OE34 OE34 = OE567 OE12 = OE567 | OE12 < OE34 OE34 < OE567 OE12 < OE567 |
⇒ Education has no significant impact on productivity (relationship only significant at the 12% probability level) | ⇒ Education increases wage costs significantly | ⇒ Education has no significant impact on profits | ⇒ Education increases productivity significantly |