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Job Market Signaling and Screening: An Experimental Comparison

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Author Info

  • Kübler, Dorothea

    ()
    (WZB - Social Science Research Center Berlin)

  • Müller, Wieland

    ()
    (University of Vienna)

  • Normann, Hans-Theo

    ()
    (Goethe University Frankfurt)

Abstract

We analyze the Spence education game in experimental markets. We compare a signaling and a screening variant, and we analyze the effect of increasing the number of competing employers from two to three. In all treatments, more efficient workers invest more often in education and employers offer higher wages for workers who have invested. However, separation is incomplete, e.g., investment does not pay on average for efficient worker types. Increased competition leads to higher wages in the signaling sessions, not with screening. In the signaling version, we observe significantly more separating outcomes than in the screening version of the game.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1794.

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Length: 42 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: Games and Economic Behavior, 2008, 64 (1), 219-236
Handle: RePEc:iza:izadps:dp1794

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Related research

Keywords: sorting; job-market signaling; experiments; Bayesian games; job-market screening;

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References

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Citations

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Cited by:
  1. Kübler, D. & Müller, W. & Normann, H.T., 2003. "Job Market Signalling and Screening: An Experimental Comparison," Discussion Paper, Tilburg University, Center for Economic Research 2003-124, Tilburg University, Center for Economic Research.
  2. Poeschel, Friedrich, 2012. "Assortative matching through signals," IAB Discussion Paper 201215, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Kübler, D. & Müller, W. & Normann, H.T., 2008. "Job-market signalling and screening: An experimental study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-347328, Tilburg University.
  4. Jeitschko, Thomas D. & Normann, Hans-Theo, 2012. "Signaling in deterministic and stochastic settings," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 82(1), pages 39-55.
  5. Andrei Bremzeny & Elena Khokhlovaz & Anton Suvorov & Jeroen van de Ven, 2011. "Bad News: An Experimental Study on the Informational Effects of Rewards," Working Papers w0164, Center for Economic and Financial Research (CEFIR).
  6. Alexander K. Koch & Albrecht Morgenstern & Philippe Raab, 2004. "An experimental test of career concerns," Royal Holloway, University of London: Discussion Papers in Economics, Department of Economics, Royal Holloway University of London 04/31, Department of Economics, Royal Holloway University of London, revised Nov 2004.
  7. Koch, Alexander K. & Morgenstern, Albrecht & Raab, Philippe, 2009. "Career concerns incentives: An experimental test," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 72(1), pages 571-588, October.
  8. Lisa L. Posey & Abdullah Yavas, 2007. "Screening equilibria in experimental markets," The Geneva Risk and Insurance Review, Palgrave Macmillan, vol. 32(2), pages 147-167, December.
  9. Benndorf, Volker & Kübler, Dorothea & Normann, Hans-Theo, 2013. "Privacy concerns, voluntary disclosure of information, and unraveling: An experiment," Discussion Papers, Research Unit: Market Behavior SP II 2013-208, Social Science Research Center Berlin (WZB).
  10. Hornig, Stephan O. & Rottmann, Horst & Wapler, Rüdiger, 2011. "Sorting on the labour market: A literature overview and theoretical framework," OTH im Dialog: Weidener Diskussionspapiere 27, University of Applied Sciences Amberg-Weiden (OTH).

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