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Sorting on the labour market: A literature overview and theoretical framework

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  • Hornig, Stephan O.
  • Rottmann, Horst
  • Wapler, Rüdiger

Abstract

In the literature there are basically two main approaches that explain the positive link between the level of education and wages: the human-capital theory and the signalling/screening (collectively known as sorting) theory. We highlight the similarity and differences between these theories and present a general theoretical model of screening with productivity-enhancing effects of education from which we derive four empirically testable hypothesis. -- In der Literatur sind zwei Theorien zur Erklärung des positiven Zusammenhangs zwischen dem Bildungsniveau und dem Lohn vorherrschend: die Human Kapital-Theorie und die Signaltheorie. Wir beschreiben die Gemeinsamkeiten und Unterschiede beider Theorien und präsentieren ein allgemeines theoretisches Signal-Modell mit produktivitätserhöhenden Effekten der Bildung. Anhand diesem Modell entwickeln wir vier Hypothesen, die empirisch getestet werden können.

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Bibliographic Info

Paper provided by University of Applied Sciences Amberg-Weiden (OTH) in its series OTH im Dialog: Weidener Diskussionspapiere with number 27.

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Date of creation: 2011
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Handle: RePEc:zbw:hawdps:27

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Web page: http://www.oth-aw.de/

Related research

Keywords: human-capital theory; signalling; screening;

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  1. 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.
  2. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
  3. Hanming Fang, 2006. "Disentangling The College Wage Premium: Estimating A Model With Endogenous Education Choices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1151-1185, November.
  4. Lofstrom, Magnus, 2000. "A Comparison of the Human Capital and Signaling Models: The Case of the Self-Employed and the Increase in the Schooling Premium in the 1980's," IZA Discussion Papers 160, Institute for the Study of Labor (IZA).
  5. Habermalz, Steffen, 2006. "The Speed of Employer Learning and Job Market Signaling Revisited," IZA Discussion Papers 2309, Institute for the Study of Labor (IZA).
  6. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
  7. Miller, Paul W & Mulvey, Charles & Martin, Nick, 1995. "What Do Twins Studies Reveal about the Economic Returns to Education? A Comparison of Australian and U.S. Findings," American Economic Review, American Economic Association, vol. 85(3), pages 586-99, June.
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