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) | 0.471*** (0.137) | 0.466*** (0.031) | 0.785*** (0.044) |
Shares of workers | ||||
Primary education (E1) | Reference | Reference | Reference | Reference |
Lower secondary (E2) | 0.018 (0.028) | −0.015 (0.023) | 0.030 (0.025) | 0.004 (0.018) |
General upper secondary education (E3) | 0.068** (0.030) | 0.001 (0.022) | 0.064** (0.026) | 0.037** (0.017) |
Technical and professional upper secondary education (E4) | 0.068** (0.030) | 0.023 (0.023) | 0.041* (0.023) | 0.014 (0.015) |
Bachelor’s or equivalent level (E5) | 0.122*** (0.047) | 0.056 (0.040) | 0.085** (0.035) | 0.071*** (0.022) |
Master’s or equivalent level (E6) | 0.199*** (0.061) | 0.243*** (0.074) | 0.082* (0.042) | 0.205*** (0.055) |
Post-Master’s level or PhD (E7) | 0.366** (0.161) | 0.295* (0.163) | 0.235* (0.141) | 0.392*** (0.142) |
Hansen over-identification test, p value | 0.487 | 0.154 | 0.686 | |
Arellano-Bond test for AR(2), p value | 0.129 | 0.284 | 0.217 | |
Number of observations | 6714 | 6714 | 6714 | 6691 |
Number of firms | 1844 | 1844 | 1844 | 1844 |
Chi-squared statistic for equality of regression coefficients, H0 | ||||
E2 = E3 | 3.63* | 1.36 | 1.78 | 4.72** |
E2 = E4 | 4.40** | 5.13** | 0.28 | 0.55 |
E2 = E5 | 5.21** | 2.81* | 2.84* | 11.67*** |
E2 = E6 | 8.48*** | 10.61*** | 1.41 | 14.22*** |
E2 = E7 | 4.65** | 3.47* | 2.18 | 7.62*** |
E3 = E4 | 0.00 | 2.14 | 1.34 | 3.35* |
E3 = E5 | 1.35 | 1.73 | 0.41 | 2.59 |
E3 = E6 | 5.25** | 9.73* | 0.20 | 12.78*** |
E3 = E7 | 3.51* | 3.14* | 1.55 | 6.20** |
E4 = E5 | 1.33 | 0.57 | 1.94 | 6.64*** |
E4 = E6 | 4.74** | 7.81*** | 1.02 | 14.60*** |
E4 = E7 | 3.48* | 2.60 | 1.94 | 7.31*** |
E5 = E6 | 1.14 | 8.75*** | 0.00 | 6.50*** |
E5 = E7 | 2.37 | 2.64 | 1.10 | 5.78** |
E6 = E7 | 1.16 | 0.15 | 1.22 | 1.39 |
Interpretationa: | E1 < E(3,4,5,6,7) E2 < E(3,4,5,6,7) E3 < E(4,5,6,7) E4 < E(5,6,7) E5 < E(6,7) E6 < E7 | E1 < E(6,7) E2 < E(4,5,6,7) E3 < E(6,7) E4 < E6 E5 < E6 | E1 < E(3,4,5,6,7) E2 < E5 | E1 < E(3,5,6,7) E2 < E(3,5,6,7) E3 < E(4,6,7) E4 < E(5,6,7) E5 < E(6,7) |
⇒Education increases productivity | ⇒Education increases wage costs | ⇒Low-educated less profitable than more educated | ⇒Education increases productivity |