Sorting on the labour market: A literature overview and theoretical framework

Stephan O. Hornig, Horst Rottmann and Rüdiger Wapler

No 27, Weidener Diskussionspapiere from University of Applied Sciences Amberg-Weiden (OTH)

Abstract: In the literature there are basically two main approaches that explain the positive link between the level of education and wages: the human-capital theory and the signalling/screening (collectively known as sorting) theory. We highlight the similarity and differences between these theories and present a general theoretical model of screening with productivity-enhancing effects of education from which we derive four empirically testable hypothesis.

Keywords: human-capital theory; signalling; screening (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-hrm and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hawdps:27

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