Education spillovers within the workplace

Kristian Hedeager Bentsen, Jakob Munch and Georg Schaur

Economics Letters, 2019, vol. 175, issue C, 57-59

Abstract: Education policies depend in part on the presence of externalities, but very little evidence exists to confirm the existence of such externalities. In this paper we investigate if there are spillover effects from education within peer groups at the workplace. We estimate the effect of increasing the share of higher educated workers in close peer groups on wages, using a rich data source linking workers to workplaces and specific occupations. Our empirical approach accounts for the endogenous sorting of workers into peer groups and workplaces, and, at the same time avoids the reflection problem. In our main specification we find statistically significant but economically small peer effects across all occupations.

Keywords: Education externality; Peer effects; Matched worker–firm data (search for similar items in EconPapers)
JEL-codes: E20 I26 J24 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Education Spillovers within the Workplace (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:175:y:2019:i:c:p:57-59

DOI: 10.1016/j.econlet.2018.11.025

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