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Higher Education, Productivity Revelation and Performance Pay Jobs

Baek, Jisun / Park, WooRam

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Abstract

This paper examines the impact of college education on workers’ subsequent careers, based on a direct role of college graduation on the revelation of workers’ individual ability. Using NLSY79, we document a positive relationship between ability and signaling behavior for high school graduates and a non-positive relationship for college graduates. Moreover, we show active job mobility for high ability high school graduates. We argue that these patterns are the result of post-schooling signaling of high school graduates whose individual ability, unlike college graduates, is not observed in the beginning of their careers.

Issue Date
2015-12
Publisher
KDI School of Public Policy and Management
Keywords
productivity revealing; off-the-job training; performance pay jobs; job mobility; college education; NLSY79
Pages
19
Series Title
KDI School Working Paper 15-13
DOI
10.2139/ssrn.2707581
Language
ENG
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