From: Does education raise productivity and wages equally? The moderating role of age and gender
Value added per hour worked (ln) | Wage cost per hour worked (ln) | Value added-wage cost gapb | ||||
---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | |
Lagged dependent variable (ln) | 0.835*** (0.039) | 0.757*** (0.101) | 0.838*** (0.026) | |||
Shares of workers | ||||||
Primary education (E1) | Reference | Reference | Reference | Reference | Reference | Reference |
Lower secondary (E2) | −0.002 (0.026) | 0.001 (0.015) | −0.027 (0.017) | −0.004 (0.009) | 0.025 (0.020) | 0.003 (0.014) |
General upper secondary education (E3) | 0.084*** (0.029) | 0.036** (0.015) | 0.021 (0.017) | 0.008 (0.009) | 0.062*** (0.022) | 0.029** (0.013) |
Technical and professional upper secondary education (E4) | 0.039 (0.028) | 0.012 (0.014) | 0.023 (0.017) | 0.010 (0.009) | 0.016 (0.021) | 0.003 (0.012) |
Bachelor’s or equivalent level (E5) | 0.483*** (0.049) | 0.078*** (0.028) | 0.338*** (0.031) | 0.075** (0.036) | 0.142*** (0.036) | 0.027 (0.020) |
Master’s or equivalent level (E6) | 0.993*** (0.065) | 0.200*** (0.043) | 0.736*** (0.038) | 0.186*** (0.072) | 0.263*** (0.050) | 0.076*** (0.023) |
Post-Master’s level or PhD (E7) | 2.265*** (0.410) | 0.338** (0.155) | 1.391*** (0.229) | 0.317** (0.160) | 0.859*** (0.301) | 0.118 (0.120) |
R-squared | 0.444 | 0.841 | 0.534 | 0.820 | 0.236 | 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 | ||||||
E2 = E3 | 13.72*** | 5.97** | 13.46*** | 1.71 | 3.96** | 3.81* |
E2 = E4 | 3.44* | 0.70 | 15.04*** | 3.36* | 0.25 | 0.00 |
E2 = E5 | 110.22*** | 7.84*** | 163.88*** | 4.47* | 12.13*** | 1.57 |
E2 = E6 | 252.80*** | 21.66*** | 455.08*** | 6.58** | 23.56*** | 8.51*** |
E2 = E7 | 30.62*** | 4.73** | 38.16*** | 3.94** | 7.71*** | 0.90 |
E3 = E4 | 3.76* | 3.70* | 0.01 | 0.05 | 7.04*** | 6.35** |
E3 = E5 | 70.57*** | 2.83* | 118.04*** | 4.21** | 5.21** | 0.02 |
E3 = E6 | 216.98*** | 17.61*** | 396.86*** | 6.64*** | 18.27*** | 4.87** |
E3 = E7 | 28.60*** | 3.95** | 35.86*** | 3.88** | 7.12*** | 0.56 |
E4 = E5 | 85.27*** | 6.10** | 109.90*** | 3.54* | 13.07*** | 1.62 |
E4 = E6 | 232.89*** | 20.83*** | 371.83*** | 6.17* | 27.99*** | 11.75*** |
E4 = E7 | 29.64*** | 4.51** | 35.40*** | 3.74* | 7.98*** | 0.94 |
E5 = E6 | 41.66*** | 11.21*** | 88.24*** | 6.63*** | 3.83* | 2.97* |
E5 = E7 | 18.22*** | 2.96* | 20.46*** | 3.35* | 5.43** | 0.54 |
E6 = E7 | 9.51*** | 0.91 | 7.58*** | 1.47 | 4.15** | 0.13 |
Interpretationa | E1 < E(3,5,6,7) E2 < E(3,4,5,6,7) E3 < E(4,5,6) E4 < E(5,6,7) E5 < E(6,7) E6 < E7 | E1 < E(3,5,6,7) E2 < E(3,5,6,7) E3 < E(4,5,6,7) E4 < E(5,6,7) E5 < E(6,7) | E1 < E(5,6,7) E2 < E(3,4,5,6,7) E3 < E(5,6,7) E4 < E(6,7) E5 < E(6,7) E6 < E7 | E1 < E(5,6,7) E2 < E(4,5,6,7) E3 < E(5,6,7) E4 < E(5,6,7) E5 < E(6,7) E6 < E7 | E1 < E(3,5,6,7) E2 < E(3,5,6,7) E3 < E(4,5,6,7) E4 < E(5,6,7) E5 < E(6,7) E6 < E7 | E1 < E(3,6) E2 < E(3,6) E3 < E(4,6) E4 < E6 E5 < E6 |
⇒Education increases productivity | ⇒Education increases productivity | ⇒Education increases wage costs | ⇒Education increases wage costs | ⇒Education increases profitability | ⇒Education increases profitability |