Signalling and Self-Insight in the Job Market
The allocation of talent in a society is an important determinant of productivity and growth. I study the informational role of education on the allocation of talent in a two-sector model where education provides workers information about their abilities. When workers and firms are equally ignorant about the abilities of a worker the unique equilibrium (Pareto-efficient) induces the mediocre to educate, while the least and the most able skip education. When workers know more than firms about their abilities, the equilibrium set expands to include equilibria where education serves as a signal. Signaling is consistent with both the most able educating, but also with the mediocre educating, and the most able skipping education.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1999|
|Date of revision:|
|Contact details of provider:|| Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.|
Web page: http://econ.tau.ac.il/foerder/about
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:teavfo:2-99. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.