Signalling

aje on January 20, 2020

Reading: Spence, M., 1973, “Job Market Signaling”. Quarterly Journal of Economics 87(3):355–374
Lecture handout: Signalling*

Textbook Reading: Chapter 3 (Section 3.4; pp. 90-96)

Here’s a lecture video providing an example of the model.

Here’s my treatment of signalling and countersignalling:

And here is a great twitter thread on why you should always wear a tie with a formal suit:

https://twitter.com/dieworkwear/status/1776148941278781833

In “What toffs and plebs share“, Ed West uses the signalling vs. counter signalling distinction to argue that institutions such as horse racing or the army demonstrate a unity of peasant culture and aristocracy. He identifies a U-curve of social patterns, with those in the middle trying hard to distinguish themselves from those below, even though this reduces their ability to mix with those at the top.

A good book (that I haven’t read yet) that uncovers how deeply social status affects human action, see:

Recommended audio:

Recommended video:

This debate considers the extent to which higher education is merely signalling:

Learning Objectives: Understand the returns to education

Focus on diversity: Claudia Goldin is a world leading labour economist, a former president of the American Economic Association, and co-author of a highly influential book on the earnings gap between high skilled and low skilled workers. She is also a pioneer for studying the role of women in the economy and won the Nobel Prize in 2023. See here for a video profile.