Reverse Educational Spillovers at the Firm Level
Christian Rupietta and
Simone Tuor Sartore
No 65, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)
Purpose: The purpose of this paper is to examine spillover effects across differently educated workers. For the first time, we consider "reverse" spillover effects, i.e. spillover effects from secondary-educated workers with dual vocational education and training (VET) to tertiary-educated workers with academic education. We argue that, due to structural differences in training methodology and content, secondary-educated workers with VET degrees have knowledge that tertiary academically educated workers do not have. Design/methodology/approach: We use data from a large employer-employee data set: the Swiss earnings structure survey. We estimate OLS and fixed effects panel-data models to identify such "reverse" spillover effects. Moreover we consider the endogenous workforce composition. Findings: We find that tertiary-educated workers have higher productivity when working together with secondary-educated workers with VET degrees. Our instrumental variable estimations support this finding. The functional form of the reverse spillover effect is inverted-U-shaped. This means that at first the reverse spillover effect from an additional secondary-educated worker is positive but diminishing. Research limitations/implications: Our results imply that firms need to combine different types of workers because their different kinds of knowledge produce spillover effects and thereby lead to overall higher productivity. Originality/value: The traditional view of spillover effects assumes that tertiary-educated workers create spillover effects towards secondary-educated workers. However, we show that workers who differ in their type of education (academic vs. vocational) may also create reverse spillover effects.
Keywords: Education; Informational Spillovers; Earnings (search for similar items in EconPapers)
JEL-codes: I20 J24 J30 (search for similar items in EconPapers)
Pages: 48 pages
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-lab and nep-lma
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Journal Article: Reverse educational spillovers at the firm level (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0065
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