%0 Report
        %A Martins, Pedro S.
        %T Firm-Level Social Returns to Education
        %D 2004
        %8 2004 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1382
        %U https://www.iza.org/index.php/publications/dp1382
        %X Do workers benefit from the education of their co-workers? This question is examined first by
introducing a model of on-the-job schooling, which argues that educated workers may
transfer part of their general skills to uneducated workers and that this spillover is affected by
the degrees of non-excludability, irreversibility and generality of those skills. We then conduct
an empirical analysis drawing on a matched panel of Portuguese firms and their workers.
Schooling endogeneity is tackled by considering firm fixed effects and instruments based on
schooling lags and the lagged share of retirement-age workers. We find evidence of large
firm-level social returns (ranging between 14% and 23% – and thus exceeding standard
estimates of private returns) and of significant returns accruing to less educated workers but
not to their more educated colleagues.
        %K wages
%K endogenous growth
%K matched employer-employee data
%K education
%K spillovers