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Education Spillovers within the Workplace

Kristian Hedeager Bentsen (), Jakob Munch and Georg Schaur
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Kristian Hedeager Bentsen: University of Copenhagen

No 12054, IZA Discussion Papers from Institute of Labor Economics (IZA)

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. The magnitude of the effect differs across length and type of education, as well as across occupations and peer group- and workplace size.

Keywords: match worker-firm data; peer effects; education externality (search for similar items in EconPapers)
JEL-codes: E20 J24 I26 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-12
New Economics Papers: this item is included in nep-hrm, nep-lma, nep-mac and nep-ure
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Published in: Economics Letters, 2019, 175, 57-59

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