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Heritage from Czar: The Russian Dual System of Schooling and Signaling

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  • ZHANGALIYEVA, Aigerim
  • NAKABAYASHI, Masaki

    ()
    (Institute of Social Science, The University of Tokyo)

Abstract

Employers 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 Info

Paper provided by Institute of Social Science, The University of Tokyo in its series ISS Discussion Paper Series (series F) with number f163.

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Length: 11 pages
Date of creation: 26 Sep 2013
Date of revision:
Handle: RePEc:itk:issdps:f163

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Keywords: Signaling; employer learning; complementarity of schooling and experience; vocational school; Russia.;

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  1. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
  2. NAKABAYASHI, Masaki, 2011. "Acquired Skills and Learned Abilities: Wage Dynamics in Internal Labor Markets," ISS Discussion Paper Series (series F) f153, Institute of Social Science, The University of Tokyo, revised 13 Apr 2014.
  3. Stéphanie Lluis, 2002. "The Role of Comparative Advantage and Learning in Wage Dynamics and Intrafirm Mobility: Evidence from Germany," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C2-3, International Conferences on Panel Data.
  4. Joshua C. Pinkston, 2006. "A test of screening discrimination with employer learning," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 267-284, January.
  5. Henry S. Farber & Robert Gibbons, 1997. "Learning and Wage Dynamics," NBER Working Papers 3764, National Bureau of Economic Research, Inc.
  6. Fabian Lange, 2007. "The Speed of Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 1-35.
  7. Uta Schönberg, 2007. "Testing for Asymmetric Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 651-691.
  8. Waldman, Michael, 2007. "Theory and evidence in internal labor markets," MPRA Paper 5113, University Library of Munich, Germany.
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