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Table 9 Estimates for the entire sample, three educational categories, static GMM-SYS estimator

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

 

GMM-SYS

Value added per hour worked (ln)

Wage cost per hour worked (ln)

Value added-wage cost gapc

(1)

(2)

(3)

Shares of workera

 Low-educated (E12)

Reference

Reference

Reference

 Middle-educated (E34)

0.037

(0.030)

0.027

(0.018)

0.013

(0.024)

 High-educated (E567)

0.378***

(0.069)

0.286***

(0.048)

0.080*

(0.047)

Hansen over-identification test, p value

0.212

0.201

0.788

Arellano-Bond test for AR(2), p value

0.132

0.573

0.024

Number of observations

6714

6714

6714

Number of firms

1844

1844

1844

Chi-squared statistic for equality of regression coefficients, H0

 E34 = E567

27.09**

29.36***

2.90*

Interpretationb

E12 < E567

E34 < E567

but

E12 = E34

E12 < E567

E34 < E567

but

E12 = E34

E12 < E567

E34 < E567

but

E12 = E34

Education

increases

productivity

Education

increases

wage costs

Education

increases

profits

  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). AR (2) refers to second-order autocorrelation in first-differenced errors. GMM-SYS specifications include first and second lags of explanatory variables (except time dummies) as instruments
  2. ***p < 0.01, **p < 0.05, *p < 0.1
  3. 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)
  4. ‘<’ (‘=’) indicates if regression coefficients are (not) statistically different at the 10% level
  5. c Value added-wage cost gap = ln(value added per hour) − ln(wage cost per hour)