|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.
This debate considers the extent to which higher education is merely signalling:
Here’s my treatment of signalling and countersignalling:
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.
|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.