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The Importance of Signalling in Job Placement and Promotion

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  • Oreopoulos, Philip
  • Heisz, Andrew

Abstract

In a setting where training or promotion opportunity depend on expected initial ability, the effects of signalling initial skills on wages may last well beyond the period when knowledge of a workers' skill set is fully known. This paper proposes extending recent tests for signalling to better accommodate training differences by using firm-level characteristics and applying these tests to a large sample of MBA and law graduates from different ranked schools.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2006236&ObjType=46&lang=en&limit=0
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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2006236e.

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Date of creation: 05 Jan 2006
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Handle: RePEc:stc:stcp3e:2006236e

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Related research

Keywords: Adult education and training; Education; training and learning; Job training and educational attainment; Labour; Work transitions and life stages; Workplace organization; innovation; performance;

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References

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  1. Michael Waldman, 1989. "Up-or-Out Contracts: A Signaling Perspective," UCLA Economics Working Papers, UCLA Department of Economics 556, UCLA Department of Economics.
  2. Robert Gibbons & Lawrence Katz, 1989. "Layoffs and Lemons," NBER Working Papers 2968, National Bureau of Economic Research, Inc.
  3. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
  4. Landers, Renee M & Rebitzer, James B & Taylor, Lowell J, 1996. "Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms," American Economic Review, American Economic Association, American Economic Association, vol. 86(3), pages 329-48, June.
  5. Stephen J. Spurr, 1990. "Sex discrimination in the legal profession: A study of promotion," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(4), pages 406-417, April.
  6. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  7. Joseph G. Altonji & Charles R. Pierret, . "Employer Learning and the Signaling Value of Education," IPR working papers, Institute for Policy Resarch at Northwestern University 96-11, Institute for Policy Resarch at Northwestern University.
  8. Dominique Demougin & Aloysius Siow, 1992. "Careers in Ongoing Hierarchies," Cahiers de recherche CREFE / CREFE Working Papers, CREFE, Université du Québec à Montréal 5, CREFE, Université du Québec à Montréal.
  9. Joseph G. Altonji & James R. Spletzer, 1991. "Worker characteristics, job characteristics, and the receipt of on-the-job training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(1), pages 58-79, October.
  10. Hartog, Joop, 1980. "Earnings and Capability Requirements," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 230-40, May.
  11. O'Flaherty, Siow A., 1990. "Up Or Out Rules In The Market For Lawyers," Discussion Papers, Columbia University, Department of Economics 1990_29, Columbia University, Department of Economics.
  12. Gibbons, Robert & Waldman, Michael, 1999. "Careers in organizations: Theory and evidence," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 36, pages 2373-2437 Elsevier.
  13. Henry S. Farber & Robert Gibbons, 1994. "Learning and Wage Dynamics," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 707, Princeton University, Department of Economics, Industrial Relations Section..
  14. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  15. Laband, David N & Lentz, Bernard F, 1992. "Self-Recruitment in the Legal Profession," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 10(2), pages 182-201, April.
  16. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 31(2), pages 831-80, June.
  17. Spurr, Stephen J, 1987. "How the Market Solves an Assignment Problem: The Matching of Lawyers with Legal Claims," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 5(4), pages 502-32, October.
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Cited by:
  1. Brad J. Hershbein, 2013. "Worker Signals among New College Graduates: The Role of Selectivity and GPA," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 13-190, W.E. Upjohn Institute for Employment Research.

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