Signaling and optimal sorting

Signaling and optimal sorting I consider educational signaling of inherent ability that facilitates sorting of individuals between sectors. More able individuals are more productive in the primary sector, and less able individuals are more productive in the secondary sector. I find signaling may increase but never maximizes welfare, and is more likely to increase welfare the greater is productivity in the secondary sector, and, possibly, the lower is productivity in the primary sector. Consistent with recent increased undergraduate enrollment in the U.S, excessive signaling occurs by less able individuals. If education increases human capital, total welfare likely increases although more individuals may over-invest in education. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economics Springer Journals

Signaling and optimal sorting

Perri, Timothy
Journal of Economics, Volume 126 (2) – Jun 6, 2018
Download PDF
17 pages
Read Article

Loading next page...
 
/lp/springer_journal/signaling-and-optimal-sorting-frZma3OgvE
Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer-Verlag GmbH Austria, part of Springer Nature
Subject
Economics; Economics, general; Economic Theory/Quantitative Economics/Mathematical Methods; Microeconomics; Macroeconomics/Monetary Economics//Financial Economics; Public Finance; Game Theory, Economics, Social and Behav. Sciences
ISSN
0931-8658
eISSN
1617-7134
DOI
10.1007/s00712-018-0618-0
Publisher site
See Article on Publisher Site

Abstract

I consider educational signaling of inherent ability that facilitates sorting of individuals between sectors. More able individuals are more productive in the primary sector, and less able individuals are more productive in the secondary sector. I find signaling may increase but never maximizes welfare, and is more likely to increase welfare the greater is productivity in the secondary sector, and, possibly, the lower is productivity in the primary sector. Consistent with recent increased undergraduate enrollment in the U.S, excessive signaling occurs by less able individuals. If education increases human capital, total welfare likely increases although more individuals may over-invest in education.

Journal

Journal of Economics – Springer Journals

Published: Jun 6, 2018

References

  • Phishing for phools: the economics of manipulation and deception
    Akerlof, GA; Shiller, RJ
  • Internal labor markets, incentives, and employment
    Altonji, JG; Pierret, C
  • Beyond signaling and human capital: education and the revelation of ability
    Arcidiacono, P; Bayer, P; Hizmo, A
  • Human capital
    Becker, GS
  • Explaining the worldwide boom in higher education of women
    Becker, GS; Hubbard, WHJ; Murphy, KM
  • The analytics of uncertainty and information
    Bickhchandani, S; Hirshleifer, J; Riley, JG
  • Signaling in higher education: the effect of access to elite colleges on choice of major
    Bostwick, V
  • The case against education
    Caplan, B
  • The speed of employer learning and job market signaling revisited
    Habermalz, S
  • Job market signaling of relative position, or Becker married to Spence
    Hopkins, E
  • The theory of assortative matching based on costly signals
    Hoppe, HC; Moldovanu, B; Sela, A
  • The speed of employer learning
    Lange, F
  • Salaries and piece rates
    Lazear, EP
  • Testing for ability when job assignment is a signal
    Perri, TJ
  • Lemons and Loons
    Perri, TJ
  • 2008 Employment law update
    Perritt, HH
  • Education signaling with uncertain returns
    Regev, T
  • Competitive signalling
    Riley, JG
  • Informational equilibrium
    Riley, JG
  • Silver signals: twenty-five years of screening and signaling
    Riley, JG
  • Market signaling
    Spence, M
  • Competitive and optimal responses to signals: an analysis of efficiency and distribution
    Spence, M
  • Signaling in retrospect and the informational structure of markets
    Spence, M
  • The theory of ‘screening’, education, and the distribution of income
    Stiglitz, JE
  • The dual avenues of labor market signaling
    Waldman, M
  • A sorting-cum-learning model of education
    Weiss, A
  • Handbook of labor economics
    Willis, RJ
  • Education and screening
    Wolpin, KI

You’re reading a free preview. Subscribe to read the entire article.

Try 2 weeks free now

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

or browse the journals available

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

Sign up
for free
Start 14 day
Free Trial