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Returns To Schooling: Skills Accumulation Or Information Revelation?

Author

Listed:
  • Steven F. Koch

    (Department of Economics, University of Pretoria)

  • S. Ssekabira Ntege

    (Department of Transportation, South Africa)

Abstract

This paper explores the degree to which imperfect information in the labour market regarding worker quality is likely to impact employment opportunities, as well as the wages associated with those opportunities. The primary purpose of this paper is to provide preliminary empirical evidence that market imperfections exist in South Africa's labour market, that those imperfections could be based on asymmetric private information, and that market participants pursue information gathering and revelation strategies to help mitigate the negative effects of the information asymmetries.

Suggested Citation

  • Steven F. Koch & S. Ssekabira Ntege, 2008. "Returns To Schooling: Skills Accumulation Or Information Revelation?," Working Papers 200812, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:200812
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    2. Chukwuone, Nnaemeka & Amaechina, Ebele C. & Enebeli-Uzor, Sunday Emeka & Iyoko, Emelyn & Okpukpara, Benjamin, 2012. "Analisys of impact of remittance on poverty in Nigeria," PEP Working Papers 164404, Partnership for Economic Policy (PEP).

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    More about this item

    Keywords

    Information asymmetry; signalling; screening; returns education;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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