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 probability 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.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on a computer with the following specifications:
• OS: Windows Server 2016 Standard
• Processor: Intel(R) Xeon(R) CPU E7-4890 v2 @ 2.80GHz 2.79 GHz (8 processors)
• Memory available: 128 GB
Runtime: 24 hours
Since not all the data are included, the package includes the results produced during the virtual verification exercise. These files can be used to be compared against the paper exhibits. The reproducibility package also includes a log of the code run in the file "log.txt".
Data access might be possible, but it requires contacting the data owners and beginning an ad-hoc request or institutional agreement.
| Author | Affiliation | |
|---|---|---|
| Antonio Soares Martins Neto | World Bank | asmartins@worldbank.org |
| Xavier Cirera | World Bank | xcirera@worldbank.org |
| Marcio Cruz | International Finance Corporation | marciocruz@ifc.org |
2025-10-09
| Location | Code |
|---|---|
| Brazil | BRA |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Antonio Soares Martins Neto | World Bank | asmartins@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
2025-10-09
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