Search

Using cross-sectional data, collected via a survey from the Greek healthcare sector, we estimate both the private (direct) and public/social (indirect) returns to education from an increase in an employee's educational level. By utilising a spatial econometrics approach, we control for the aggregation problems that plague the majority of the existing literature. The results demonstrate the existence of statistically and economically significant spillover effects, irrespective of whether the educational 'distance' between employees is increased or decreased, and indicate that traditional estimates of the rate of return to education are significantly biased when not accounting for spillover effects. [ABSTRACT FROM AUTHOR]