IDEAS home Printed from https://ideas.repec.org/a/ucp/jhucap/doi10.1086-716345.html
   My bibliography  Save this article

Long-Term Labor Market Consequences of Costly Signaling: Evidence from a Natural Experiment

Author

Listed:
  • Somdeep Chatterjee
  • Jai Kamal

Abstract

We study a unique reform in an Indian state that increased penalties for cheating on public exams required for high school graduation. This led to a massive decline in percentages of students graduating high school. Average wages for those subject to the reform and also the premium for the students graduating have increased over the next decade or so. We interpret the reform as reducing the cost of signaling high ability by obtaining a diploma, thereby potentially leading to a shift from a pooling to a separating equilibrium.

Suggested Citation

  • Somdeep Chatterjee & Jai Kamal, 2021. "Long-Term Labor Market Consequences of Costly Signaling: Evidence from a Natural Experiment," Journal of Human Capital, University of Chicago Press, vol. 15(4), pages 596-628.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/716345
    DOI: 10.1086/716345
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/716345
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/716345
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/716345?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jhucap:doi:10.1086/716345. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JHC .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.