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The signalling value of education across genders

Author

Listed:
  • Ulf Nielsson

    (Copenhagen Business School)

  • Herdis Steingrimsdottir

    (Copenhagen Business School)

Abstract

This study examines gender discrimination and the possibility that education is more important for signalling ability among women than men. As social networks tend to run along gender lines and managers in the labour market are predominantly male, it may be more difficult for women to signal their ability without college credentials. The Lang and Manove (Am Econ Rev 101(4):1467–1496, 2011) model of racial discrimination and educational sorting is applied to examine the gender gap in schooling attainment. The model is empirically estimated for whites, blacks and Hispanics separately, with the results among whites consistent with education being more valuable to women due to signalling. For 90% of the whites in the sample women choose a higher level of education, given their ability, than men. Women on average obtain 0.5–0.7 extra years of schooling compared to men with the same ability score.

Suggested Citation

  • Ulf Nielsson & Herdis Steingrimsdottir, 2018. "The signalling value of education across genders," Empirical Economics, Springer, vol. 54(4), pages 1827-1854, June.
    • Handle: RePEc:spr:empeco:v:54:y:2018:i:4:d:10.1007_s00181-017-1264-z
    DOI: 10.1007/s00181-017-1264-z
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    More about this item

    Keywords

    Education; Ability; Signalling; Gender; Race;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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