Sorting on the labour market: A literature overview and theoretical framework
In the literature there are basically two main approaches that explain the positive link between the level of education and wages: the human-capital theory and the signalling/screening (collectively known as sorting) theory. We highlight the similarity and differences between these theories and present a general theoretical model of screening with productivity-enhancing effects of education from which we derive four empirically testable hypothesis.
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- Miller, Paul W & Mulvey, Charles & Martin, Nick, 1995. "What Do Twins Studies Reveal about the Economic Returns to Education? A Comparison of Australian and U.S. Findings," American Economic Review, American Economic Association, vol. 85(3), pages 586-599, June.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004.
"A test of the sorting model of education in Australia,"
Economics of Education Review,
Elsevier, vol. 23(5), pages 473-482, October.
- Paul W. Miller & Charles Mulvey & Nick Martin, 2004. "A Test of the Sorting Model of Education in Australia," Economics Discussion / Working Papers 04-12, The University of Western Australia, Department of Economics.
- Lee, Kiong-Hock, 1980. "Screening, ability, and the productivity of education in Malaysia," Economics Letters, Elsevier, vol. 5(2), pages 189-193.
- Kübler, D. & Müller, W. & Normann, H.T., 2003.
"Job Market Signalling and Screening : An Experimental Comparison,"
2003-124, Tilburg University, Center for Economic Research.
- Kübler, Dorothea & Müller, Wieland & Normann, Hans-Theo, 2008. "Job-market signaling and screening: An experimental comparison," Games and Economic Behavior, Elsevier, vol. 64(1), pages 219-236, September.
- Kübler, Dorothea & Müller, Wieland & Normann, Hans-Theo, 2005. "Job Market Signaling and Screening: An Experimental Comparison," IZA Discussion Papers 1794, Institute for the Study of Labor (IZA).
- Dorothea Kuebler, Wieland Mueller and Hans Normann, 2004. "Job market signaling and screening: An experimental comparison," Royal Holloway, University of London: Discussion Papers in Economics 04/02, Department of Economics, Royal Holloway University of London, revised Apr 2004.
- Hanming Fang, 2006. "Disentangling The College Wage Premium: Estimating A Model With Endogenous Education Choices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1151-1185, November.
- Lofstrom, Magnus, 2000. "A Comparison of the Human Capital and Signaling Models: The Case of the Self-Employed and the Increase in the Schooling Premium in the 1980's," IZA Discussion Papers 160, Institute for the Study of Labor (IZA).
- Habermalz, Steffen, 2006. "The Speed of Employer Learning and Job Market Signaling Revisited," IZA Discussion Papers 2309, Institute for the Study of Labor (IZA).
- Pedro Landeras & J. M. Pérez de Villarreal, 2005. "A Noisy Screening Model of Education," LABOUR, CEIS, vol. 19(1), pages 35-54, 03.
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