The role of hard-to-obtain information on ability for the school-to-work transition

Barbara Mueller and Stefan Wolter

Empirical Economics, 2014, vol. 46, issue 4, 1447-1471

Abstract: When information about the abilities of job seekers is difficult to obtain, statistical discrimination by employers may be an efficient strategy in the hiring and wage-setting process. In this article, we use a unique, longitudinal survey that follows the PISA 2000 students in their early educational and work–life careers. We find that a deviance in the PISA test scores from what one would have predicted based on easy-to-obtain observable characteristics influences the probability of succeeding in the transition from compulsory schooling to a firm-based apprenticeship significantly but in a non-symmetric way. Only those who had a test result below their predicted result have significantly lower chances of getting an apprenticeship. We also find evidence that the importance of hard-to-obtain information on ability is further revealed in the course of the apprenticeship. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Statistical discrimination; School-to-work transition; PISA; I2; J24; J71 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s00181-013-0709-2

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