Complementarities among types of education in affecting firms' productivity
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Date
2023-12
Publication Type
Journal Article
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yes
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Abstract
This article uses Swiss firm-level panel data to show that complementarities among workers with different types of education affect firms' productivity. We consider workers with four different types of education: no post-secondary education, upper secondary vocational education and training (VET), tertiary professional education, and tertiary academic education. To account for possible endogeneity, we exploit within-firm variation and employ a structural estimation technique that uses intermediate inputs as a proxy for unobserved productivity shocks. Our results suggest that workers with an upper secondary VET education are complementary to workers with a tertiary academic education, while workers with no post-secondary education are complementary to workers with a tertiary professional education. Altogether, our findings highlight the importance of vertical and horizontal education diversity within firms.
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published
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37 (4)
Pages / Article No.
554 - 591
Publisher
Wiley
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09704 - Renold, Ursula / Renold, Ursula
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