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Education, Dynamic Signaling and Social Distance Author info | Abstract | Publisher info | Download info | Related research | Statistics Gallice, Andrea
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The paper enriches a standard signaling model of education with issues of social distance defined over educational achievements. More specifically it considers the effects that the presence of conformist and status seeking individuals has on educational dynamics. Under very reasonable assumptions about the composition of the society, the model endogenously displays a growing average level of schooling. As education rises, signals get noisy and potentially harmful for what concerns firms' profitability. Firms, in order to adjust their screening process, react with an increase of their educational requirements. All these dynamics are in line with recent trends and other stylized facts about education.
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Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number
1364.
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Date of creation: Jan 2007Date of revision:
Handle: RePEc:lmu:muenec:1364Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://www.vwl.uni-muenchen.de More information through EDIRC
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Keywords: education signaling status seeking conformist behaviour. Find related papers by JEL classification: I20 - Health, Education, and Welfare - - Education - - - General D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: George A. Akerlof, 1997.
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