Albrecht, James W. (Department of Economics, Georgetown University, CESifo and IZA, Bonn) van Ours, Jan C. () (CentER for Economic Research, Tilburg University, CEPR, Institute for Labor Studies (OSA) and IZA, Bonn)
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This paper presents a test of the educational signaling hypothesis. If employers use education as a signal in the hiring process, they will rely more on education when less is otherwise known about applicants. We find that employers are more likely to lower educational standards when an informal, more informative recruitment channel is used, so we conclude that education is used as a signal in the hiring process.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
399.
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