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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- 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.
- 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.
- 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).
- Kübler, D. & Müller, W. & Normann, H.T., 2003. "Job Market Signalling and Screening : An Experimental Comparison," Discussion Paper 2003-124, Tilburg University, Center for Economic Research.
- Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
- 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).
- 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.
- 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.
- 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.
- Pedro Landeras & J. M. Pérez de Villarreal, 2005. "A Noisy Screening Model of Education," LABOUR, CEIS, vol. 19(1), pages 35-54, 03.
- Habermalz, Steffen, 2006. "The Speed of Employer Learning and Job Market Signaling Revisited," IZA Discussion Papers 2309, Institute for the Study of Labor (IZA).
- 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 586-99, June.
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