Complementarities among types of education in affecting firms' productivity

Thomas Bolli and Filippo Pusterla

LABOUR, 2023, vol. 37, issue 4, 554-591

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.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bla:labour:v:37:y:2023:i:4:p:554-591

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