Affiliation:
1. Chair of Education Systems, MTEC Department ETH Zurich Zurich Switzerland
2. Swiss Federal University for Vocational Education and Training SFUVET Zollikofen Switzerland
Abstract
AbstractThis article uses Swiss firm‐level panel data to show that complementarities among workers with different types of education affect firms' productivity. We consider workers with four different types of education: no post‐secondary education, upper secondary vocational education and training (VET), tertiary professional education, and tertiary academic education. To account for possible endogeneity, we exploit within‐firm variation and employ a structural estimation technique that uses intermediate inputs as a proxy for unobserved productivity shocks. Our results suggest that workers with an upper secondary VET education are complementary to workers with a tertiary academic education, while workers with no post‐secondary education are complementary to workers with a tertiary professional education. Altogether, our findings highlight the importance of vertical and horizontal education diversity within firms.
Subject
Geography, Planning and Development,Demography