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Education and Job Market Signalling: A Comment

Author

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  • Massimo Giannini

    (University of Rome Tor Vergata)

Abstract

In this paper the Signalling approach to the explanation of wage differentials is analyzed both under a microeconomic and a macroeconomic viewpoint. Departuring from the classical Spence's model, the introduction of inequalities in accessing to education leads to redistributive effects among workers and firms. Moreover the existence of factors related both to local and to parental externalities greately reduce the informative power of education about individual ability.

Suggested Citation

  • Massimo Giannini, 1997. "Education and Job Market Signalling: A Comment," Game Theory and Information 9704002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:9704002
    Note: Type of Document - PDF; prepared on IBM PC ; to print on HP Laser; pages: 23; figures: included
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/9704/9704002.pdf
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    References listed on IDEAS

    as
    1. Engers, Maxim, 1987. "Signalling with Many Signals," Econometrica, Econometric Society, vol. 55(3), pages 663-674, May.
    2. Myerson, Roger B., 1994. "Communication, correlated equilibria and incentive compatibility," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 24, pages 827-847, Elsevier.
    3. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
    4. In-Koo Cho & David M. Kreps, 1987. "Signaling Games and Stable Equilibria," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 179-221.
    5. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    6. Cho, In-Koo & Sobel, Joel, 1990. "Strategic stability and uniqueness in signaling games," Journal of Economic Theory, Elsevier, vol. 50(2), pages 381-413, April.
    7. Banks, Jeffrey S & Sobel, Joel, 1987. "Equilibrium Selection in Signaling Games," Econometrica, Econometric Society, vol. 55(3), pages 647-661, May.
    8. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    9. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Gonzalo Olcina Vauteren & Luisa Escriche, 2006. "Education And Family Income: Can Poor Children Signal Their Talent?," Working Papers. Serie AD 2006-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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    More about this item

    Keywords

    Signalling Earnings distribution Entropy;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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