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Approaches to learn about employer learning

Author

Listed:
  • Ablay, Mahmut
  • Lange, Fabian

Abstract

The empirical literature on employer learning assumes that employers learn about unobserved ability differences across workers as they spend time in the labor market. This article describes testable implications that arise from this basic hypothesis and how they have been used to quantify the contribution of Job Market Signaling and human capital in measured returns to education. While the empirical basis is still thin, the results suggest that Signaling contributes at most about 25% to the observed returns to education.

Suggested Citation

  • Ablay, Mahmut & Lange, Fabian, 2022. "Approaches to learn about employer learning," CLEF Working Paper Series 49, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    • Handle: RePEc:zbw:clefwp:49
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    Cited by:

    1. Graetz, Georg, 2023. "Imperfect Signals," IZA Discussion Papers 16104, Institute of Labor Economics (IZA).
    2. Balgova, Maria & Tekleselassie, Tsegay & Hensel, Lukas & Witte, Marc J., 2025. "Wage Information and Applicant Selection," IZA Discussion Papers 18220, Institute of Labor Economics (IZA).
    3. Sun, Qian, 2024. "Asymmetric employer learning and gender-based statistical discrimination in China," China Economic Review, Elsevier, vol. 87(C).
    4. Krumme, Anna & Westphal, Matthias, 2024. "Monetary returns to upper secondary schooling, the evolution of unobserved heterogeneity, and implications for employer learning," Ruhr Economic Papers 1130, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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