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The Importance of Signalling in Job Placement and Promotion

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  • Oreopoulos, Philip
  • Heisz, Andrew

Abstract

In a setting where training or promotion opportunity depend on expected initial ability, the effects of signalling initial skills on wages may last well beyond the period when knowledge of a workers' skill set is fully known. This paper proposes extending recent tests for signalling to better accommodate training differences by using firm-level characteristics and applying these tests to a large sample of MBA and law graduates from different ranked schools.

Suggested Citation

  • Oreopoulos, Philip & Heisz, Andrew, 2006. "The Importance of Signalling in Job Placement and Promotion," Analytical Studies Branch Research Paper Series 2006236e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2006236e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2006236
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    References listed on IDEAS

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    Cited by:

    1. W. Bentley MacLeod & Evan Riehl & Juan E. Saavedra & Miguel Urquiola, 2017. "The Big Sort: College Reputation and Labor Market Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 223-261, July.
    2. Brad J. Hershbein, 2013. "Worker Signals among New College Graduates: The Role of Selectivity and GPA," Upjohn Working Papers 13-190, W.E. Upjohn Institute for Employment Research.

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