Does education raise productivity and wages equally? The moderating role of age and gender

Does education raise productivity and wages equally? The moderating role of age and gender

Abstract We estimate the impact of education on productivity, wage costs and productivity-wage gaps (i.e. profits) using Belgian linked panel data. Findings highlight that educational credentials have a stronger impact on productivity than on wage costs. Firms’ profitability is found to rise when lo...

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Bibliographic Details
Main Authors: Stephan Kampelmann, François Rycx, Yves Saks, Ilan Tojerow
Format: Article
Language:English
Published: Sciendo 2018-01-01
Series:IZA Journal of Labor Economics
Subjects:
C33
I21
J24
J31
Online Access:http://link.springer.com/article/10.1186/s40172-017-0061-4
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spelling doaj-263825cf5fb94ba88bd4fcdaa5465c3a2021-05-02T03:52:18ZengSciendoIZA Journal of Labor Economics2193-89972018-01-017113710.1186/s40172-017-0061-4Does education raise productivity and wages equally? The moderating role of age and genderStephan Kampelmann0François Rycx1Yves Saks2Ilan Tojerow3Université libre de Bruxelles, SBS-EM, CEB and DULBEAUniversité libre de Bruxelles, SBS-EM, CEB and DULBEANational Bank of BelgiumUniversité libre de Bruxelles, SBS-EM, CEB and DULBEAAbstract We estimate the impact of education on productivity, wage costs and productivity-wage gaps (i.e. profits) using Belgian linked panel data. Findings highlight that educational credentials have a stronger impact on productivity than on wage costs. Firms’ profitability is found to rise when lower educated workers are substituted by higher educated ones. This effect is found to be more pronounced among younger workers and women. Findings thus suggest that the productivity to wage cost ratio of low-educated workers is detrimental to their employability, especially when young or female. They also support the existence of a glass ceiling on women’s career development.http://link.springer.com/article/10.1186/s40172-017-0061-4C33I21J24J31
collection DOAJ
language English
format Article
sources DOAJ
author Stephan Kampelmann
François Rycx
Yves Saks
Ilan Tojerow
spellingShingle Stephan Kampelmann
François Rycx
Yves Saks
Ilan Tojerow
Does education raise productivity and wages equally? The moderating role of age and gender
IZA Journal of Labor Economics
C33
I21
J24
J31
author_facet Stephan Kampelmann
François Rycx
Yves Saks
Ilan Tojerow
author_sort Stephan Kampelmann
title Does education raise productivity and wages equally? The moderating role of age and gender
title_short Does education raise productivity and wages equally? The moderating role of age and gender
title_full Does education raise productivity and wages equally? The moderating role of age and gender
title_fullStr Does education raise productivity and wages equally? The moderating role of age and gender
title_full_unstemmed Does education raise productivity and wages equally? The moderating role of age and gender
title_sort does education raise productivity and wages equally? the moderating role of age and gender
publisher Sciendo
series IZA Journal of Labor Economics
issn 2193-8997
publishDate 2018-01-01
description Abstract We estimate the impact of education on productivity, wage costs and productivity-wage gaps (i.e. profits) using Belgian linked panel data. Findings highlight that educational credentials have a stronger impact on productivity than on wage costs. Firms’ profitability is found to rise when lower educated workers are substituted by higher educated ones. This effect is found to be more pronounced among younger workers and women. Findings thus suggest that the productivity to wage cost ratio of low-educated workers is detrimental to their employability, especially when young or female. They also support the existence of a glass ceiling on women’s career development.
topic C33
I21
J24
J31
url http://link.springer.com/article/10.1186/s40172-017-0061-4
work_keys_str_mv AT stephankampelmann doeseducationraiseproductivityandwagesequallythemoderatingroleofageandgender
AT francoisrycx doeseducationraiseproductivityandwagesequallythemoderatingroleofageandgender
AT yvessaks doeseducationraiseproductivityandwagesequallythemoderatingroleofageandgender
AT ilantojerow doeseducationraiseproductivityandwagesequallythemoderatingroleofageandgender
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