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Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis

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  • James W. Albrecht
  • Jan C. Van Ours

Abstract

This paper presents a test of the educational signaling hypothesis. If employers use education as a signal in the hiring process, they will rely more on education when less is otherwise known about applicants. We find that employers are more likely to lower educational standards when an informal, more informative recruitment channel is used. We thus reject the hypothesis that education is not used as a signal in the hiring process.

Suggested Citation

  • James W. Albrecht & Jan C. Van Ours, 2006. "Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(3), pages 361-372, October.
    • Handle: RePEc:bla:scandj:v:108:y:2006:i:3:p:361-372
    DOI: 10.1111/j.1467-9442.2006.00457.x
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    Cited by:

    1. Jeremy Rosen & Alexandre Olbrecht, 2020. "Data‐Driven Drafting: Applying Econometrics To Employ Quarterbacks," Contemporary Economic Policy, Western Economic Association International, vol. 38(2), pages 313-326, April.
    2. Thomas O. BRODATY & Robert J. GARY-BOBO & Ana PRIETO, 2009. "Does Speed Signal Ability , A Test of Spence's Theory," Working Papers 2009-02, Center for Research in Economics and Statistics.
    3. Andrea Weber & Helmut Mahringer, 2008. "Choice and success of job search methods," Empirical Economics, Springer, vol. 35(1), pages 153-178, August.
    4. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    5. Matthieu Manant & Serge Pajak & Nicolas Soulié, 2019. "Can social media lead to labor market discrimination? Evidence from a field experiment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 225-246, April.
    6. Oppedisano, Veruska, 2014. "Higher education expansion and unskilled labour market outcomes," Economics of Education Review, Elsevier, vol. 40(C), pages 205-220.
    7. Falk, Armin & Lalive, Rafael & Zweimüller, Josef, 2005. "The success of job applications: a new approach to program evaluation," Labour Economics, Elsevier, vol. 12(6), pages 739-748, December.
    8. Aline Branche-Seigeot, 2013. "La valorisation des compétences de base sur le marché du travail français," Post-Print halshs-00794385, HAL.
    9. Schettkat, Ronald & Yocarini, Lara, 2001. "Education Driving the Rise in Dutch Female Employment: Explanations for the Increase in Part-time Work and Female Employment in the Netherlands, Contrasted with Germany," IZA Discussion Papers 407, IZA Network @ LISER.
    10. Garcia-Mainar, Inmaculada & Montuenga, Victor M., 2019. "The signalling role of over-education and qualifications mismatch," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 99-119.
    11. Foo, Chuan Chew & Ismail, Russayani binti & Eam, Lim, 2016. "Retaining International Students for Advanced Degree in Malaysia: Quality Matters," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 133-144.
    12. Strobl, Eric, 2003. "Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana," IZA Discussion Papers 683, IZA Network @ LISER.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General

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