A test of employer learning in the labour market for young Australians

Stephen Cheung

Applied Economics Letters, 2010, vol. 17, issue 1, 93-98

Abstract: This paper reports a test of employer learning for a panel of young Australian men. The information contained in a test score is found to already be observed by employers at the time a worker enters the labour market. However the return to parental education is found to increase with experience, indicating that the attributes reflected in this variable are initially harder for employers to observe, and that learning occurs with respect to them. When the sample is partitioned by hiring channel, these effects are confined to workers who were recruited through less informative channels.

Date: 2010
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DOI: 10.1080/13504850701719850

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