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Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis

Author

Listed:
  • Albrecht, James

    () (Georgetown University)

  • van Ours, Jan C.

    () (Erasmus University Rotterdam)

Abstract

This paper presents a test of the educational signaling hypothesis. If employers use education as a signal in the hiring process, they will rely more on education when less is otherwise known about applicants. We find that employers are more likely to lower educational standards when an informal, more informative recruitment channel is used, so we conclude that education is used as a signal in the hiring process.

Suggested Citation

  • Albrecht, James & van Ours, Jan C., 2001. "Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis," IZA Discussion Papers 399, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp399
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    References listed on IDEAS

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    1. Barron, John M & Mellow, Wesley, 1982. "Labor Contract Formation, Search Requirements, and Use of a Public Employment Service," Economic Inquiry, Western Economic Association International, vol. 20(3), pages 381-387, July.
    2. van Ours, J.C. & Ridder, G., 1991. "Job requirements and recruitment of new employees," Other publications TiSEM ce03ddbe-179d-4e95-8278-5, Tilburg University, School of Economics and Management.
    3. van Ours, J C & Ridder, G, 1993. "Vacancy Durations: Search or Selection?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 187-198, May.
    4. Albrecht, James W., 1981. "A procedure for testing the signalling hypothesis," Journal of Public Economics, Elsevier, vol. 15(1), pages 123-132, February.
    5. Roper, Stephen, 1988. "Recruitment Methods and Vacancy Duration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(1), pages 51-64, February.
    6. van Ours, J.C. & Ridder, G., 1992. "Vacancies and recruitment of new employees," Other publications TiSEM 9acc708a-0885-46a2-aef5-7, Tilburg University, School of Economics and Management.
    7. Kevin Lang & David Kropp, 1986. "Human Capital Versus Sorting: The Effects of Compulsory Attendance Laws," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 609-624.
    8. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    9. van Ours, Jan & Ridder, Geert, 1991. "Job requirements and the recruitment of new employees," Economics Letters, Elsevier, vol. 36(2), pages 213-218, June.
    10. Riley, John G, 1979. "Testing the Educational Screening Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 227-252, October.
    11. Lindeboom, Maarten & van Ours, Jan C & Renes, Gusta, 1994. "Matching Employers and Workers: An Empirical Analysis on the Effectiveness of Search," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 45-67, January.
    12. van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-155, April.
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    Cited by:

    1. Andrea Weber & Helmut Mahringer, 2008. "Choice and success of job search methods," Empirical Economics, Springer, vol. 35(1), pages 153-178, August.
    2. Falk, Armin & Lalive, Rafael & Zweimüller, Josef, 2005. "The success of job applications: a new approach to program evaluation," Labour Economics, Elsevier, vol. 12(6), pages 739-748, December.
    3. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Aline Branche-Seigeot, 2013. "La valorisation des compétences de base sur le marché du travail français," Post-Print halshs-00794385, HAL.
    5. Schettkat, Ronald & Yocarini, Lara, 2001. "Education Driving the Rise in Dutch Female Employment: Explanations for the Increase in Part-time Work and Female Employment in the Netherlands, Contrasted with Germany," IZA Discussion Papers 407, Institute for the Study of Labor (IZA).
    6. Oppedisano, Veruska, 2014. "Higher education expansion and unskilled labour market outcomes," Economics of Education Review, Elsevier, vol. 40(C), pages 205-220.
    7. 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

    Keywords

    Recruitment; signaling;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General

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