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Self-Awareness, Spencian Education and Performance Wages

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Author Info

  • Hvide, H.K.

Abstract

If worker performance is observable and contractible without cost, then why do we observe "Spencian", unproductive, education? We provide the following explanation. Say that the economy consists of several different sectors, and that agents are uncertain which of these sectors they are best fit for. Furthermore we assume that education improves an agent's estimate of his abilities. In that case education may be of social gain since it may improve the allocational efficiency of the economy.

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Bibliographic Info

Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 10/97.

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Length: 28 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:norgee:10/97

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Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Email:
Web page: http://www.nhh.no/
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Keywords: EDUCATION ; LABOUR ; WAGES;

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