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Job Market Signalling and Screening : An Experimental Comparison

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  • Kübler, D.
  • Müller, W.

    (Tilburg University, School of Economics and Management)

  • Normann, H.T.

Abstract

We analyze the Spence education game in experimental markets. We compare a signaling and a screening variant, and we analyze the e¤ect of increasing the number of employers from two to three. In all treatments, there is a strong tendency to separate. More e¢cient workers invest more often and employers bid higher for workers who have invested. More e¢cient workers also earn higher wages. Employers’ pro…ts are usually not di¤erent from zero. Increased competition leads to higher wages only in the signaling sessions. We …nd that workers in the screening sessions invest more often and earn higher wages when there are two employers.
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  • Kübler, D. & Müller, W. & Normann, H.T., 2003. "Job Market Signalling and Screening : An Experimental Comparison," Other publications TiSEM f25d3215-6181-4b68-89f9-1, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:f25d3215-6181-4b68-89f9-1a50bb7027ea
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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