Education and Signaling: Evidence from a Highly Competitive Labor Market
This paper directly tests for differences in returns to education between the employed and self-employed in Hong Kong. Using a step-function, we find significantly smaller returns for the self-employed, suggesting that in the highly competitive labor market of Hong Kong education plays a signaling role. This pattern persists for both genders, when accounting for self-selection into employment status and when accounting for self-employed professionals who signal.
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Volume (Year): 12 (2004)
Issue (Month): 1 ()
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