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Returns to Education Through Access to Higher-Paying Firms: Evidence from US Matched Employer-Employee Data

Engbom, Niklas and Moser, Christian (2017): Returns to Education Through Access to Higher-Paying Firms: Evidence from US Matched Employer-Employee Data. Published in: American Economic Review , Vol. 107, No. 5 (May 2017): pp. 374-378.

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Abstract

This paper sheds light on the microfoundations of reduced-form returns to education. Specifically, we ask: are more advanced higher education degrees associated with increased earnings within employers or higher average pay across employers? And to the extent that sorting across firms matters, what parts of the employer pay distribution are higher degrees differentially represented in?

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