TY  - RPRT
        AU  - Martins, Pedro S.
        TI  - Firm-Level Social Returns to Education
        PY  - 2004/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1382
        UR  - https://www.iza.org/publications/dp1382
        AB  - 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.
        KW  - wages
KW  - endogenous growth
KW  - matched employer-employee data
KW  - education
KW  - spillovers
        ER  -