How Acid are Lemons? Adverse Selection and Signalling for Skilled Labour Market Entrants
This paper for the first time jointly analyses the consequences of adverse selection, signalling and indices on entry wages of skilled employees. It uses German linked employer employee panel data (LIAB) and introduces a measure for relative productivity of skilled job applicants based on apprenticeship wages. It shows that post-apprenticeship employer changers are a negative selection from the training firms’ point of view. Negative selection leads to lower average wages of employer changers in the first skilled job in comparison to stayers. Entry wages of employer changers are specifically reduced by high occupation and training firm retention rates. High apprenticeship wages signal a positive selection of apprenticeship applicants. Works councils and establishment size seem to be indices for good training quality. Finally, positive individual signals such as schooling background affect the skilled entry wages of employer changers positively.
|Date of creation:||Jan 2012|
|Date of revision:||Feb 2012|
|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
References listed on IDEAS
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.:
- Christian Pfeifer & Stefan Schneck, 2010.
"Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data,"
Working Paper Series in Economics
163, University of Lüneburg, Institute of Economics.
- Pfeifer, Christian & Schneck, Stefan, 2010. "Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data," Hannover Economic Papers (HEP) dp-438, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Gibbons, R. & Katz, L.F., 1989.
"Layoffs And Lemons,"
531, Massachusetts Institute of Technology (MIT), Department of Economics.
- Kriechel, Ben & Mühlemann, Samuel & Pfeifer, Harald & Schuette, Miriam, 2012.
"Works Councils, Collective Bargaining and Apprenticeship Training,"
IZA Discussion Papers
6497, Institute for the Study of Labor (IZA).
- Ben Kriechel & Samuel Muehlemann & Harald Pfeifer & Miriam Schuette, 2011. "Works councils, collective bargaining and apprenticeship training," Economics of Education Working Paper Series 0057, University of Zurich, Institute for Strategy and Business Economics (ISU).
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
- 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.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- McLaughlin, Kenneth J, 1991. "A Theory of Quits and Layoffs with Efficient Turnover," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 1-29, February.
- Jacobebbinghaus, Peter & Alda, Holger, 2007. "LIAB-Datenhandbuch, Version 2.0 (LIAB Data Handbook Version 2.0)," FDZ Datenreport. Documentation on Labour Market Data 200702_de, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Acemoglu, Daron & Pischke, Jorn-Steffen, 2000.
"Certification of training and training outcomes,"
European Economic Review,
Elsevier, vol. 44(4-6), pages 917-927, May.
- Thomas J. Kane & Dietmar Harhoff, 1997.
"Is the German apprenticeship system a panacea for the U.S. labor market?,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 10(2), pages 171-196.
- Harhoff, Dietmar & Kane, Thomas J., 1995. "Is the German apprenticeship system a panacea for the US labour market?," ZEW Discussion Papers 95-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Harhoff, Dietmar & Kane, Thomas J, 1996. "Is the German Apprenticeship System a Panacea for the US Labour Market?," CEPR Discussion Papers 1311, C.E.P.R. Discussion Papers.
- Bruce C. Greenwald & Robert R. Glasspiegel, 1983. "Adverse Selection in the Market for Slaves: New Orleans, 1830â€“1860," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 479-499.
- Mohrenweiser, Jens & Zwick, Thomas, 2008.
"Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered,"
ZEW Discussion Papers
08-019, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Mohrenweiser, Jens & Zwick, Thomas, 2009. "Why do firms train apprentices? The net cost puzzle reconsidered," Labour Economics, Elsevier, vol. 16(6), pages 631-637, December.
- Jens Mohrenweiser & Thomas Zwick, 2008. "Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," Economics of Education Working Paper Series 0016, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Oct 2008.
- Dustmann, Christian & Schönberg, Uta, 2004.
"Training and Union Wages,"
IZA Discussion Papers
1435, Institute for the Study of Labor (IZA).
- Iourii Manovskii & Gueorgui Kambourov, 2004.
"Occupational Specificity of Human Capital,"
2004 Meeting Papers
197, Society for Economic Dynamics.
- Jens Mohrenweiser & Thomas Zwick & Uschi Backes-Gellner, 2010.
"Poaching And Firm Sponsored Training: First Clean Evidence,"
Economics of Education Working Paper Series
0051, University of Zurich, Institute for Strategy and Business Economics (ISU), revised May 2013.
- Mohrenweiser, Jens & Zwick, Thomas & Backes-Gellner, Uschi, 2013. "Poaching and firm-sponsored training: First clean evidence," ZEW Discussion Papers 13-037, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 25-60 National Bureau of Economic Research, Inc.
- Neal, Derek, 1999.
"The Complexity of Job Mobility among Young Men,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(2), pages 237-61, April.
- George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 97(4), pages 543-569.
- Uta SchÃ¶nberg, 2007. "Testing for Asymmetric Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 651-691.
- Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December.
- Lars Behrenz, 2001. "Who Gets The Job And Why? An Explorative Study Of Employers’ Recruitment Behavior," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-278, November.
When requesting a correction, please mention this item's handle: RePEc:iso:educat:0071. 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.