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Human Capital Versus Signaling Models: University Access and High School Drop-outs

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Kelly Bedard

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Abstract

Under the educational sorting hypothesis, an environment in which some individuals are constrained from entering university will be characterized by increased pooling at the high school graduation level, as compared to an environment with greater university access. This results because some potential high school drop-outs and university enrollees choose the high school graduate designation in order to take advantage of high ability individuals who are constrained from entering university. This is in stark contrast to human capital theory which predicts higher university enrollment, but identical high school drop-out rates in regions with greater university access. Using NLSYM and NLSYW education data from the late 1960s and early 1970s, I find that labor markets that contain a university have higher high school drop-out rates.

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Paper provided by McMaster University in its series Canadian International Labour Network Working Papers with number 19.

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Handle: RePEc:mcm:cilnwp:19

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  1. Lang, Kevin & Kropp, David, 1986. "Human Capital versus Sorting: The Effects of Compulsory Attendance Laws," The Quarterly Journal of Economics, MIT Press, vol. 101(3), pages 609-24, August. [Downloadable!] (restricted)
  2. David Card, 1993. "Using Geographic Variation in College Proximity to Estimate the Return to Schooling," NBER Working Papers 4483, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August. [Downloadable!] (restricted)
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(explanations, 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.)

  1. David A. Green, 2007. "A Cautionary Discussion about Relying on Human Capital Policy to Meet Redistributive Goals," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 397-418, December. [Downloadable!] (restricted)
  2. Joan Esteban & Debraj Ray, 2006. "Inequality, Lobbying, and Resource Allocation," American Economic Review, American Economic Association, vol. 96(1), pages 257-279, March. [Downloadable!]
  3. Habermalz, Steffen, 2003. "Job Matching and the Returns to Educational Signals," IZA Discussion Papers 726, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Dorothea Kuebler, Wieland Mueller and Hans Normann, 2004. "Job market signaling and screening: An experimental comparison," Royal Holloway, University of London: Discussion Papers in Economics 04/02, Department of Economics, Royal Holloway University of London, revised Apr 2004. [Downloadable!]
    Other versions:
  5. Tali Regev, 2007. "Imperfect information, self-selection and the market for higher education," Working Paper Series 2007-18, Federal Reserve Bank of San Francisco. [Downloadable!]
  6. Paul Willen & Igal Hendel & Joel Shapiro, 2004. "Educational Opportunity and Income Inequality," NBER Working Papers 10879, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Bergh, Andreas & Fink, Günther, 2005. "Escaping Mass Education – Why Harvard Pays," Working Papers 2005:2, Lund University, Department of Economics. [Downloadable!]
  8. Marc Gurgand & Eric Maurin, 2007. "A large scale experiment: wages and educational expansion in France," PSE Working Papers 2007-21, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  9. Chevalier, Arnaud & Harmon, Colm & Walker, Ian & Zhu, Yu, 2003. "Does Education Raise Productivity or Just Reflect It?," CEPR Discussion Papers 3993, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Robert Dur, 2006. "Status-Seeking in Violent Subcultures and the Double Dividend of Zero-Tolerance," Tinbergen Institute Discussion Papers 06-005/1, Tinbergen Institute. [Downloadable!]
  11. Lari Arthur Viianto, 2007. "On The Positive Effects Of Taxation On Education," Working Papers. Serie AD 2007-30, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  12. Robert Dur, 2006. "Status-Seeking in Criminal Subcultures and the Double Dividend of Zero-Tolerance," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  13. Strobl, Eric, 2003. "Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana," IZA Discussion Papers 683, Institute for the Study of Labor (IZA). [Downloadable!]
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