@TechReport{iza:izadps:dp17690,
            	author={Portugal, Pedro and Reis, Hugo and Guimaraes, Paulo and Cardoso, Ana Rute},
            	title={Human Capital Spillovers and the External Returns to Education},
            	year={2025},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17690},
            	url={https://www.iza.org/publications/dp17690},
	abstract={We employ a regression model with spillover effects to show that the impact of peer quality on wages is quite large. We estimate that a 10 percent increase in peer quality implies a 2.1 percent increase in an individual's wage. In addition, we estimate the external returns to education using a novel identification strategy, which is strictly based on the peer effect channel, netting out the role of homophily and labor market sorting. We show that a one-year increase in the co-workers' education leads to a 0.58 percent increase in wages. We also show that both effects fade smoothly over time.},
	keywords={wage distribution;human capital spillovers;external returns to education;peer effects;linked employer-employee data;high-dimensional fixed effects;workplace;job and occupation},
            }