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A procedure for testing the signalling hypothesis

Authors
Journal
Journal of Public Economics
0047-2727
Publisher
Elsevier
Publication Date
Volume
15
Issue
1
Identifiers
DOI: 10.1016/0047-2727(81)90057-8
Disciplines
  • Education

Abstract

Abstract This paper develops a procedure for testing the signalling hypothesis as advanced by Spence et al. The approach used is to examine directly the question of whether employers use education for purely informational purposes in their hiring decisions. An application of the method to a recruitment by the Swedish auto manufacturer Volvo is presented.

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