Higher Education Expansion and Firm Organization. Policy Research Working Paper 11216
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| Title: | Higher Education Expansion and Firm Organization. Policy Research Working Paper 11216 |
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| Language: | English |
| Authors: | Xavier Cirera, Marcio Cruz, Antonio Martins-Neto, World Bank |
| Source: | World Bank. 2025. |
| Availability: | World Bank Publications. 1818 H Street NW, Washington, DC 20433. Tel: 202-458-4500; Fax: 202-552-1500; Web site: http://www.worldbank.org/ |
| Peer Reviewed: | N |
| Page Count: | 32 |
| Publication Date: | 2025 |
| Document Type: | Reports - Research |
| Education Level: | Higher Education Postsecondary Education |
| Descriptors: | Foreign Countries, Higher Education, Access to Education, Education Work Relationship, Developing Nations, School Business Relationship, Labor Market, Educational Attainment, College Graduates, Organizational Change, Personnel Selection, Costs, Educational Change |
| Geographic Terms: | Brazil |
| Abstract: | This paper investigates the impact of higher education expansion on firm performance in developing countries. It focuses on the significant expansion of higher education in Brazil between 2000 and 2012, which substantially increased higher education enrollment and graduation rates, thereby reducing the costs of hiring college-educated workers. Building on the theory of knowledge-based hierarchies and using a difference-in-differences approach and matching techniques, the paper finds that the surge in skilled labor supply led to a rise in the proportion of college-educated workers within firms in the treated microregions. This increase was accompanied by an increased prob-ability of firms adding knowledge hierarchies, followed by a rise in productivity and an increased likelihood of export. The findings suggest that policies affecting the cost and accessibility of hiring professionals and managers can significantly influence firms' organizational structures, with implications for firm performance and productivity. |
| Abstractor: | As Provided |
| Entry Date: | 2025 |
| Accession Number: | ED676614 |
| Database: | ERIC |
| Abstract: | This paper investigates the impact of higher education expansion on firm performance in developing countries. It focuses on the significant expansion of higher education in Brazil between 2000 and 2012, which substantially increased higher education enrollment and graduation rates, thereby reducing the costs of hiring college-educated workers. Building on the theory of knowledge-based hierarchies and using a difference-in-differences approach and matching techniques, the paper finds that the surge in skilled labor supply led to a rise in the proportion of college-educated workers within firms in the treated microregions. This increase was accompanied by an increased prob-ability of firms adding knowledge hierarchies, followed by a rise in productivity and an increased likelihood of export. The findings suggest that policies affecting the cost and accessibility of hiring professionals and managers can significantly influence firms' organizational structures, with implications for firm performance and productivity. |
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