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A Procedure for Testing the Signalling Hypothesis

Author

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  • Albrecht, James W.

    (Columbia University)

Abstract

This paper develops a procedure for testing the signaling hypothesis as advanced by Spence, et. al. The approach used is to examine directly the question of whether employers use education for purely informational purposes in their hiring decisions. An application of the method to a recruitment by the Swedish auto manufacturer Volvo is presented.

Suggested Citation

  • Albrecht, James W., 1980. "A Procedure for Testing the Signalling Hypothesis," Working Paper Series 29, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0029
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    References listed on IDEAS

    as
    1. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    2. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 227-252, October.
    3. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    4. Taubman, Paul J & Wales, Terence J, 1973. "Higher Education, Mental Ability, and Screening," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 28-55, Jan.-Feb..
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Fabrizio Zerbini, 2017. "CSR Initiatives as Market Signals: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 146(1), pages 1-23, November.
    2. James W. Albrecht & Jan C. Van Ours, 2006. "Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(3), pages 361-372, October.
    3. Soumyanetra Munshi, 2017. "¡®Arranged¡¯ Marriage, Education, and Dowry: A Contract-theoretic Perspective," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 35-71, March.
    4. Soumyanetra Munshi, 2014. "'Arranged' Marriage, Education, and Dowry: A Contract-Theoretic Perspective," Working Papers id:5696, eSocialSciences.
    5. Henry S. Farber & Robert Gibbons, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(4), pages 1007-1047.
    6. 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.
    7. Suqin Ge & Hans Haller, 2018. "Job Market Signaling and Returns to Education," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 734-741, January.
    8. Thomas O. BRODATY & Robert J. GARY-BOBO & Ana PRIETO, 2009. "Does Speed Signal Ability , A Test of Spence's Theory," Working Papers 2009-02, Center for Research in Economics and Statistics.
    9. Herrmann, Andrea M. & Zaal, Petra M. & Chappin, Maryse M.H. & Schemmann, Brita & Lühmann, Amelie, 2023. "“We don't need no (higher) education” - How the gig economy challenges the education-income paradigm," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    10. Brown, Sarah & Sessions, John G., 1999. "Education and employment status: a test of the strong screening hypothesis in Italy," Economics of Education Review, Elsevier, vol. 18(4), pages 397-404, October.
    11. Louis Chauvel, 1998. "La seconde explosion scolaire : diffusion des diplômes, structure sociale et valeur des titres," Revue de l'OFCE, Programme National Persée, vol. 66(1), pages 5-36.
    12. Strobl, Eric, 2003. "Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana," IZA Discussion Papers 683, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Employers; Education; Recruitment; Manufacturing;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I20 - Health, Education, and Welfare - - Education - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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