Beyond signaling and human capital: Education and the revelation of ability
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We provide evidence that college graduation 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, but is revealed to the labor market more gradually for high school graduates. Consequently, from the 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 returns to ability.
Published Version (Please cite this version)10.1257/app.2.4.76
Publication InfoArcidiacono, Peter; Bayer, Patrick; & Hizmo, Aurel (2010). Beyond signaling and human capital: Education and the revelation of ability. American Economic Journal: Applied Economics, 2(4). pp. 76-104. 10.1257/app.2.4.76. Retrieved from https://hdl.handle.net/10161/4417.
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Professor of Economics
Professor Arcidiacono specializes in research involving applied microeconomics, applied economics, and labor economics. His research primarily focuses on education and discrimination. His work focuses specifically on the exploration of a variety of subjects, such as structural estimation, affirmative action, minimum wages, teen sex, discrimination, higher education, and dynamic discrete choice models, among others. He recently received funding from a National Science Foundation Grant for his pro
Gilhuly Family Distinguished Professor in Economics
Bayer's research focuses on wide range of subjects including racial inequality and segregation, social interactions, housing markets, education, and criminal justice. His most recent work has been published in the Quarterly Journal of Economics, American Economic Review, Econometrica, and the Review of Financial Studies. He is currently working on projects that examine jury representation and its consequences, the intergenerational consequences of residential and school segregation, neighborhood
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