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A Procedure for Testing the Signalling Hypothesis


  • Albrecht, James W.

    (Columbia University)


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

    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..
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    Cited by:

    1. 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.
    2. 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.
    3. Soumyanetra Munshi, 2014. "'Arranged' Marriage, Education, and Dowry: A Contract-Theoretic Perspective," Working Papers id:5696, eSocialSciences.
    4. V. Albouy & C. Tavan, 2007. "Dynamics of Social Inequalities in French Higher Education," Documents de Travail de la DESE - Working Papers of the DESE g2007-06, Institut National de la Statistique et des Etudes Economiques, DESE.
    5. Joseph G. Altonji & Charles R. Pierret, "undated". "Employer Learning and Statistical Discrimination," IPR working papers 97-18, Institute for Policy Resarch at Northwestern University.
    6. 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.
    7. Henry S. Farber & Robert Gibbons, 1991. "Learning and Wage Dynamics," NBER Working Papers 3764, National Bureau of Economic Research, Inc.
    8. 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.
    9. Strobl, Eric, 2003. "Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana," IZA Discussion Papers 683, Institute for the Study of Labor (IZA).

    More about this item


    Employers; Education; Recruitment; Manufacturing;

    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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