Does education raise productivity and wages equally? The moderating role of age and gender

Table 5 OLS (static and dynamic) estimates for the entire sample, three educational categories

	Value added per hour worked (ln)		Wage cost per hour worked (ln)		Value added-wage cost gap^c
	(1)	(2)	(3)	(4)	(5)	(6)
Lagged dependent variable (ln)		0.839^*** (0.038)		0.765^*** (0.099)		0.839^*** (0.026)
Shares of workers^a
Low-educated (E12)	Reference	Reference	Reference	Reference	Reference	Reference
Middle-educated (E34)	0.051^*** (0.018)	0.020^*** (0.010)	0.036^*** (0.010)	0.010^* (0.006)	0.015 (0.014)	0.011 (0.010)
Highly educated (E567)	0.752^*** (0.038)	0.131^*** (0.030)	0.564^*** (0.023)	0.130^** (0.053)	0.188^*** (0.028)	0.044^*** (0.016)
R-squared	0.431	0.841	0.517	0.819	0.232	0.748
F-stat (joint significance), p value	0.00	0.00	0.00	0.00	0.00	0.00
Number of observations	6714	6714	6714	6714	6714	6714
Number of firms	1844	1844	1844	1844	1844	1844
F-statistic for equality of regression coefficients, H₀
E34 = E567	203.58^***	9.71^***	291.16^***	3.09^**	42.92^***	6.64^***
Interpretation^b	E12 < E34 E12 < E567 E34 < E567	E12 < E34 E12 < E567 E34 < E567	E12 < E34 E12 < E567 E34 < E567	E12 < E34 E12 < E567 E34 < E567	E12 < E567 E34 < E567	E12 < E567 E34 < E567
Interpretation^b	⇒Education increases productivity	⇒Education increases productivity	⇒Education increases wage costs	⇒Education increases wage costs	⇒E567 more profitable than E12 and E34	⇒E567 more profitable than E12 and E34

Notes: Standard errors, that are robust to heteroskedasticity and autocorrelation, are reported between parentheses. Regressions also control for: % of workers with 10 years of tenure or more; % workers younger than 30 and older than 49 years, respectively; % women; % part-time workers; % blue-collar workers; % workers with fixed term employment contract; % apprentices; % temporary agency workers; ln of firm size; ln of capital stock per worker; level of collective wage bargaining; region where the firm is located (2 dummies); industries (8 dummies), and years dummies (11)
^***p < 0.01, ^**p < 0.05, ^*p < 0.1
^a Low-educated workers (E12) have at most a degree of lower secondary school. Middle-educated workers (E34) have at most a degree from upper (general, technical or professional) secondary school. High-educated workers (E567) have a tertiary educational attainment (i.e. at least a Bachelor’s or equivalent degree)
^b ‘<’ indicates when regression coefficients are statistically different at the 10% level
^c Value added-wage cost gap = ln(value added per hour) − ln(wage cost per hour)