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Signaling to Experts

Florian Scheuer () and Pablo Kurlat
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Pablo Kurlat: Stanford University

No 501, 2016 Meeting Papers from Society for Economic Dynamics

Abstract: We study an otherwise standard education signaling economy with one additional feature: some of the potential employers can (imperfectly) observe workers' types directly. We propose a definition of competitive equilibrium for such an economy. The separating allocation is an equilibrium, in which employer's direct observation is irrelevant. However, there is another equilibrium where more informed employers hire high type workers with no education and pay lower wagers.

Date: 2016
New Economics Papers: this item is included in nep-edu and nep-mic
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https://economicdynamics.org/meetpapers/2016/paper_501.pdf (application/pdf)

Related works:
Working Paper: Signaling to Experts (2017) Downloads
Working Paper: Signaling to Experts (2017) Downloads
Working Paper: Signaling to Experts (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed016:501

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More papers in 2016 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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