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Firm-level social returns to education

Pedro S. Martins and Jim Y. Jin
Journal of Population Economics
Vol. 23, No. 2 (April 2010), pp. 539-558
Published by: Springer
Stable URL: http://www.jstor.org/stable/20685330
Page Count: 20
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Firm-level social returns to education
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Abstract

Do workers benefit from the education of their co-workers? We examine this question first by introducing a model of learning, which argues that educated workers may transfer part of their general skills to uneducated workers, and then by examining detailed matched employer–employee panel data from Portugal. We find evidence of large firm-level social returns (between 14% and 23%), much larger than standard estimates of private returns, and of significant returns accruing to less educated workers but not to their more educated colleagues.

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