Incentives for Schools, Educational Signals and Labour Market Outcomes
Central exams have been discussed as an incentive to improve educational outcomes. In our paper we study the impact of central exams on labor market outcomes. We explain the quality choice of schools under central and non-central exams and model the resulting students’ schooling decisions and employers’ wage decisions. We use the German Abitur and the variation among the German federal states with respect to central exams as a quasi experimental design. We expect the ratio of Abitur holders to increase in states without central exams and their wage premiums to decrease at the same time. In states with central exams these effects should not occur. We test our implications with official statistics on education and with the GSOEP. The first two implications are born out in the data. Finally, explanations and policy recommendations are discussed.
|Date of creation:||Jun 2006|
|Date of revision:||Jun 2006|
|Contact details of provider:|| Postal: Plattenstrasse 14, CH-8032 Zürich|
Phone: ++41 1 634 29 27
Fax: ++41 1 634 43 48
Web page: http://www.isu.uzh.ch
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Effinger, M.R. & Polborn, M.K., 1997.
"A Model of Vertically Differenciated Education,"
97.469, Toulouse - GREMAQ.
- Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
- Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
- Bishop, John H, 1997. "The Effect of National Standards and Curriculum-Based Exams on Achievement," American Economic Review, American Economic Association, vol. 87(2), pages 260-64, May.
- Anabela Botelho & Lígia Costa Pinto, 2003.
"Students' expectations of the economic returns to college education Results of a controlled experiment,"
NIMA Working Papers
27, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
- Botelho, Anabela & Pinto, Ligia Costa, 2004. "Students' expectations of the economic returns to college education: results of a controlled experiment," Economics of Education Review, Elsevier, vol. 23(6), pages 645-653, December.
- Audrey Light & Wayne Strayer, 2003.
"Who Receives the College Wage Premium? Assessing the Labor Market Returns to Degrees and College Transfer Patterns,"
03-02, Ohio State University, Department of Economics.
- Audrey Light & Wayne Strayer, 2004. "Who Receives the College Wage Premium?: Assessing the Labor Market Returns to Degrees and College Transfer Patterns," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
- Paul W. Miller & Charles Mulvey & Nick Martin, 2004.
"A Test of the Sorting Model of Education in Australia,"
Economics Discussion / Working Papers
04-12, The University of Western Australia, Department of Economics.
- Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
- Bishop, J., 1997. "The Effect of national Standards and Curriculum-Based Exams on Achievement," Papers 97-01, Cornell - Center for Advanced Human Resource Studies.
- John H. Tyler & Richard J. Murnane & John B. Willett, 2000. "Estimating the Labor Market Signaling Value of the GED," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 431-468.
- Hendrik JÃ¼rges & Kerstin Schneider, 2005. "Dynamische Lohneffekte beruflicher Weiterbildung," MEA discussion paper series 05092, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- Eugene A. Kroch & Kriss Sjoblom, 1994. "Schooling as Human Capital or a Signal: Some Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 156-180.
- Giorgio Brunello & Claudio Lucifora & Rudolf Winter-Ebmer, 2004. "The Wage Expectations of European Business and Economics Students," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
- Hendrik Jürges & Kerstin Schneider, 2004. "International Differences in Student Achievement: An Economic Perspective," German Economic Review, Verein für Socialpolitik, vol. 5(3), pages 357-380, 08.
- Wikstrom, Christina & Wikstrom, Magnus, 2005. "Grade inflation and school competition: an empirical analysis based on the Swedish upper secondary schools," Economics of Education Review, Elsevier, vol. 24(3), pages 309-322, June.
- Webbink, Dinand & Hartog, Joop, 2004. "Can students predict starting salaries? Yes!," Economics of Education Review, Elsevier, vol. 23(2), pages 103-113, April.
- Ludger Woessmann, 2004. "The Effect Heterogeneity of Central Exams: Evidence from TIMSS, TIMSS-Repeat and PISA," CESifo Working Paper Series 1330, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:iso:educat:0009. 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: (Christian Eggenberger)
If references are entirely missing, you can add them using this form.