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Signalling, Inequality and the Social Structure

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Ana M. Ferrer

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Abstract

This paper proposes a theory of endogenous transmission of social status through signalling in the labour market. A signalling game is analysed, in which education, acting as a signalling good, determines one's position in society. The economy's degree of inequality is shown to be a determinant of whether a society is 'aristocratic', where high income is the source of social standing, or 'meritocratic', bestowing status on high ability. Each social structure shows a different balance between production efficiency and social factors such as equality or mobility. Copyright (c) The London School of Economics and Political Science 2005.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0013-0427.2005.00428.x
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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 72 (2005)
Issue (Month): 3 (08)
Pages: 515-529
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Handle: RePEc:bla:econom:v:72:y:2005:i:3:p:515-529

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This page was last updated on 2009-12-18.

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