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Educational Performance as Signalling Device: Evidence from Italy

Author

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  • Luisa Rosti

    (University of Pavia)

  • Chikara Yamaguchi

    (Sapporo Gakuin University)

  • Carolina Castagnetti

    (University of Pavia)

Abstract

Following Brown and Sessions (1999) we apply the comparative techniques originated by Wolpin (1977) and Psacharopoulos (1979) to discriminate between the weak and strong screening hypotheses. Our data provides additional empirical results for the Italian labour market shifting the focus of the relationship between education and wages from the highest level of education completed to more specific measurements like degree score and completion speed. Our results show that the strong screening hypothesis is strengthened, i. e. that educational performance has an insignificant return for the self-employed, but a significantly positive return for employees.

Suggested Citation

  • Luisa Rosti & Chikara Yamaguchi & Carolina Castagnetti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-05i20006
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    References listed on IDEAS

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General

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