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 |