Is Education Used as a Signaling Device for Productivity in Developing Countries? Evidence from Ghana
This paper investigates whether education is used as a signaling device for worker productivity in developing countries. To do such we employ a simple test of employer learning on Ghana manufacturing data. We find no evidence of educational signaling for individuals who were hired through direct contacts in the firm, and thus for workers for which employers arguably have more information about their true abilities. In contrast, education acts as signal for workers who were hired through more formal channels, although only for those that do not receive on-the-job-training.
|Date of creation:||Jan 2003|
|Date of revision:|
|Publication status:||published as "Do employers use education as a signal for ability in developing countries? Evidence from Ghana" in: Applied Economics Letters, 2004, 11(4), 259-261|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Kelly Bedard, 2001.
"Human Capital versus Signaling Models: University Access and High School Dropouts,"
Journal of Political Economy,
University of Chicago Press, vol. 109(4), pages 749-775, August.
- Kelly Bedard, . "Human Capital Versus Signaling Models: University Access and High School Drop-outs," Canadian International Labour Network Working Papers 19, McMaster University.
- Kelly Bedard, . "Human Capital Versus Signaling Models: University Access and High School Drop-outs," Claremont Colleges Working Papers 1999-01, Claremont Colleges.
- Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
- Bauer, Thomas & Haisken-DeNew, John P, 2000.
"Employer Learning And The Returns To Schooling,"
CEPR Discussion Papers
2445, C.E.P.R. Discussion Papers.
- Albrecht, James W., 1980.
"A Procedure for Testing the Signalling Hypothesis,"
Working Paper Series
29, Research Institute of Industrial Economics.
- Kevin Lang, 1992.
"Does the Human-Capital/Educational-Sorting Debate Matter for Development Policy?,"
NBER Working Papers
4052, National Bureau of Economic Research, Inc.
- Lang, Kevin, 1994. "Does the Human-Capital/Educational-Sorting Debate Matter for Development Policy?," American Economic Review, American Economic Association, vol. 84(1), pages 353-58, March.
- Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 313-350.
- 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).
- 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.
- Albrecht, James & van Ours, Jan C, 2001. "Using Employer Hiring Behaviour to Test the Educational Signalling Hypothesis," CEPR Discussion Papers 2968, C.E.P.R. Discussion Papers.
- Albrecht, J.W. & van Ours, J.C., 2001. "Using Employer Hiring Behavior to Test the Educational Signaling Hypothesis," Discussion Paper 2001-49, Tilburg University, Center for Economic Research.
- Henry S. Farber & Robert Gibbons, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, Oxford University Press, vol. 111(4), pages 1007-1047.
- Harley Frazis, 2002. "Human capital, signaling, and the pattern of returns to education," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 298-320, April.
- Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
- Psacharopoulos, George, 1979. "On the weak versus the strong version of the screening hypothesis," Economics Letters, Elsevier, vol. 4(2), pages 181-185.
- Strobl, Eric & Byrne, David, 2002.
"Defining Unemployment in Developing Countries: Evidence from Trinidad and Tobago,"
IZA Discussion Papers
659, Institute for the Study of Labor (IZA).
- Byrne, David & Strobl, Eric, 2004. "Defining unemployment in developing countries: evidence from Trinidad and Tobago," Journal of Development Economics, Elsevier, vol. 73(1), pages 465-476, February.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier.
- Layard, Richard & Psacharopoulos, George, 1974. "The Screening Hypothesis and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 985-98, Sept./Oct.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp683. 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: (Mark Fallak)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.