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Beyond Signaling and Human Capital: Education and the Revelation of Ability
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TLDR
The authors found that from the very beginning of their careers, college graduates are paid in accordance with their own ability, while the wages of high school graduates are initially unrelated to their ability.Abstract:
We provide evidence that graduating from college plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is observed nearly perfectly for college graduates. In contrast, returns to AFQT for high school graduates are initially very close to zero and rise steeply with experience. As a result, from the very beginning of their careers, college graduates are paid in accordance with their own ability, while the wages of high school graduates are initially unrelated to their own ability. This view of ability revelation in the labor market has considerable power in explaining racial differences in wages, education, and the returns to ability.read more
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Making College Worth It: A Review of the Returns to Higher Education
TL;DR: To make the best college investment, Oreopoulos and Petronijevic stress, prospective students must give careful consideration to selecting the institution itself, the major to follow, and the eventual occupation to pursue.
ReportDOI
Are Some Degrees Worth More than Others? Evidence from college admission cutoffs in Chile
Justine S. Hastings,Justine S. Hastings,Christopher Neilson,Seth D. Zimmerman,Seth D. Zimmerman +4 more
TL;DR: This paper studied the long-run earnings effects of college admission and found that returns are heterogeneous, with large, positive returns to highly selective degrees and degrees in health, science, and social science fields.
Journal ArticleDOI
Beyond Signaling and Human Capital: Education and the Revelation of Ability †
TL;DR: This paper found that ability is observed nearly perfectly for college graduates, but is revealed to the labor market more gradually for high school graduates, while from the beginning of their careers, college graduates are paid in accordance with their own ability.
Posted Content
Making College Worth It: A Review of Research on the Returns to Higher Education. NBER Working Paper 19053.
TL;DR: The authors reviewed the literature on the returns to higher education in an attempt to determine who benefits from college, and concluded that the investment appears to payoff for both the average and marginal student.
Journal ArticleDOI
Divergent Paths: A New Perspective on Earnings Differences Between Black and White Men Since 1940
TL;DR: In this paper, the authors present new evidence on the evolution of black-white earnings differences among all men, including both workers and nonworkers, and study two measures: (i) the level earnings gap, the difference between a black man's percentile in the black earnings distribution and the position he would hold in the white earnings distribution.
References
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Journal ArticleDOI
Job Market Signaling
TL;DR: In this paper, the authors present a model in which signaling is implicitly defined and explains its usefulness, in which the employer is not sure of the productive capabilities of an individual at the time he/she hires him.
Book
Schooling, Experience, and Earnings
TL;DR: In this article, the authors analyzed the distribution of worker earnings across workers and over the working age as consequences of differential investments in human capital and developed the human capital earnings function, an econometric tool for assessing rates of return and other investment parameters.
Journal ArticleDOI
The Theory of Screening, Education, and the Distribution of Income
ReportDOI
Estimates of the Economic Return to Schooling from a New Sample of Twins
Alan B. Krueger,Alan B. Krueger,Alan B. Krueger,Orley Ashenfelter,Orley Ashenfelter,Orley Ashenfelter +5 more
TL;DR: The authors used a survey of identical twins to study the economic returns to schooling and found that an additional year of schooling increases wages by 12-16 percent, a higher estimate of the economic retums to schooling than has been previously found.
Posted Content
Employer Learning and Statistical Discrimination
TL;DR: In this paper, the authors provide a test for statistical discrimination or rational stereotyping in environments in which agents learn over time, and they also examine the empirical implications of statistical discrimination on the basis of race.