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Do employers use education as a signal for ability in developing countries? Evidence from Ghana

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  • Eric Strobl

Abstract

This study investigates whether employers in developing countries use education as a signal for employees' productivity using data for Ghana manufacturing. Evidence is found supportive of this for individuals who were not hired through direct contacts in the firm, and thus for individuals for whom employers are likely to have relatively less information about their productive abilities. This result seems to rest on adequately controlling for on-the-job-training.

Suggested Citation

  • Eric Strobl, 2004. "Do employers use education as a signal for ability in developing countries? Evidence from Ghana," Applied Economics Letters, Taylor & Francis Journals, vol. 11(4), pages 259-261.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:4:p:259-261
    DOI: 10.1080/13504850410001674920
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    References listed on IDEAS

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    1. Bauer, Thomas K. & Haisken-DeNew, John P., 2001. "Employer learning and the returns to schooling," Labour Economics, Elsevier, vol. 8(2), pages 161-180, May.
    2. Teal, Francis, 2000. "Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing sector: 1991-1995," Journal of Development Economics, Elsevier, vol. 61(2), pages 447-461, April.
    3. Francis Teal, 1995. "Real wages and the demand for labour in Ghana`s manufacturing sector," Economics Series Working Papers WPS/1995-07, University of Oxford, Department of Economics.
    4. Hessel Oosterbeek & Edwin Leuven, 2001. "Firm-Specific Human Capital as a Shared Investment: Comment," American Economic Review, American Economic Association, vol. 91(1), pages 342-347, March.
    5. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    6. Masanori Hashimoto, 2001. "Firm-Specific Human Capital as a Shared Investment: Reply," American Economic Review, American Economic Association, vol. 91(1), pages 348-349, March.
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    Cited by:

    1. Sun, Qian, 2024. "Asymmetric employer learning and gender-based statistical discrimination in China," China Economic Review, Elsevier, vol. 87(C).
    2. Bok Hoon & Daniel Parent, 2013. "Learning and the Form of Compensation," Journal of Labor Research, Springer, vol. 34(1), pages 79-98, March.
    3. Wang, Jun & Li, Bo, 2020. "Does employer learning with statistical discrimination exist in China? Evidence from Chinese Micro Survey Data," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 319-333.

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