Heritage from Czar: The Russian Dual System of Schooling and Signaling
AbstractEmployers use educational background as a signal of a workerfs latent ability. This signaling effect decreases as employers learn about the workerfs ability with his/her work experience, which results in negative coefficient of interaction term between schooling and experience in wage equation. Meanwhile, if schooling and experience are complements, it works to make the coefficient positive. We show the latter complementarity effect dominates for vocational school graduates school in Russia. Given that European vocational school systems were introduced from the Russian Empire, our results at least partly explain why employer learning is only weakly observed in Europe.
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Bibliographic InfoPaper provided by Institute of Social Science, The University of Tokyo in its series ISS Discussion Paper Series (series F) with number f163.
Length: 11 pages
Date of creation: 26 Sep 2013
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Signaling; employer learning; complementarity of schooling and experience; vocational school; Russia.;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-05 (All new papers)
- NEP-CIS-2013-10-05 (Confederation of Independent States)
- NEP-CWA-2013-10-05 (Central & Western Asia)
- NEP-EDU-2013-10-05 (Education)
- NEP-TRA-2013-10-05 (Transition Economics)
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