Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana

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Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana

Author Info

Strobl, Eric () (CORE, Catholic University of Louvain, IZA Bonn)

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Eric Albert Strobl

Abstract

This paper investigates whether education is used as a signaling device for worker productivity in developing countries. To do such we employ a simple test of employer learning on Ghana manufacturing data. We find no evidence of educational signaling for individuals who were hired through direct contacts in the firm, and thus for workers for which employers arguably have more information about their true abilities. In contrast, education acts as signal for workers who were hired through more formal channels, although only for those that do not receive on-the-job-training.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 683.

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Length: 18 pages
Date of creation: Jan 2003
Date of revision:
Handle: RePEc:iza:izadps:dp683

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Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

This paper has been announced in the following NEP Reports:

NEP-AFR-2003-01-27 (Africa)
NEP-ALL-2003-01-27 (All new papers)
NEP-DEV-2003-01-27 (Development)
NEP-LAB-2003-01-27 (Labour Economics)

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Farber, Henry S & Gibbons, Robert, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1007-47, November. [Downloadable!] (restricted)
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Other versions:
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Strobl, Eric & Byrne, David, 2002. "Defining Unemployment in Developing Countries: Evidence from Trinidad and Tobago," IZA Discussion Papers 659, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Byrne, David & Strobl, Eric, 2004. "Defining unemployment in developing countries: evidence from Trinidad and Tobago," Journal of Development Economics, Elsevier, vol. 73(1), pages 465-476, February. [Downloadable!] (restricted)
Bauer, Thomas K. & Haisken-DeNew, John P., 2001. "Employer learning and the returns to schooling," Labour Economics, Elsevier, vol. 8(2), pages 161-180, May. [Downloadable!] (restricted)
Other versions:
- Bauer, Thomas K. & Haisken-DeNew, John P., 2000. "Employer Learning and the Returns to Schooling," IZA Discussion Papers 146, Institute for the Study of Labor (IZA). [Downloadable!]
- Bauer, Thomas & Haisken-DeNew, John P, 2000. "Employer Learning And The Returns To Schooling," CEPR Discussion Papers 2445, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Harley Frazis, 2002. "Human capital, signaling, and the pattern of returns to education," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 298-320, April.
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Other versions:
- Joseph G. Altonji & Charles R. Pierret, . "Employer Learning and Statistical Discrimination," IPR working papers 97-18, Institute for Policy Resarch at Northwestern University.
- Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Joseph G. Altonji & Charles R. Pierret, 1997. "Employer learning and statistical discrimination," Working Paper Series, Macroeconomic Issues WP-97-11, Federal Reserve Bank of Chicago.

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