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Table 6 OLS (static and dynamic) estimates for the entire sample, seven educational categories

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

  1. 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)
  2. ***p < 0.01, **p < 0.05, *p < 0.1
  3. a ‘<’ indicates when regression coefficients are statistically different at the 10% level
  4. Value added-wage cost gap = ln(value added per hour) − ln(wage cost per hour)