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Education and the Allocation of Talent

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Author Info
Hans K. Hvide (Norwegian School of Economics and Business)

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Abstract

I study how education affects the allocation of talent into different sectors of the economy. I focus on two forces. First, education adds to a worker's information capital and, thus, may change her self-confidence. Second, performance contracts give a worker incentives to choose a sector according to her abilities. The baseline model predicts that workers with intermediate ability educate, while the most able skip education. In an extension, I compare the U.K. and the U.S. bachelor's degrees and, moreover, discuss hybrid educational systems, common in Europe, that offer both U.K. and U.S. types of bachelor's degrees.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JOLE210408
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 21 (2003)
Issue (Month): 4 (October)
Pages: 945-944
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Handle: RePEc:ucp:jlabec:v:21:y:2003:i:4:p:945-944

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  1. Nick Feltovich & Rick Harbaugh & Ted To, . "Signaling and Countersignaling: A Theory of Understatement," Claremont Colleges Working Papers 1999-21, Claremont Colleges. [Downloadable!]
  2. Kim-Sau Chung & Peter Eso, 2007. "Signalling with Career Concerns," Discussion Papers 1443, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  3. Tali Regev, 2007. "Imperfect information, self-selection and the market for higher education," Working Paper Series 2007-18, Federal Reserve Bank of San Francisco. [Downloadable!]
  4. Solimano, Andres, 2006. "The International Mobility of Talent and its Impact on Global Development," Working Papers DP2006/08, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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This page was last updated on 2009-11-21.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.