A Comparison of the Human Capital and Signaling Models: The Case of the Self-Employed and the Increase in the Schooling Premium in the 1980's
نویسنده
چکیده
This paper utilizes the self-employed to analyze the observed increase in the educational earnings premium in the 1980’s. The paper compares the predictions of the signaling and human capital models in response to an exogenous demand shock such as a skill-biased technological change. Since the self-employed have no incentive to invest in a costly signal to show to employers their productivity, a change in the schooling equilibrium should not affect their earnings. Four testable hypotheses are derived. The findings suggest that the signaling model may indeed predict the observed changes in the schooling premium that are not consistent with the predictions of the human capital model. JEL Classification: J23, J24, J31, D31
منابع مشابه
روند جهانی در سنجش سرمایه اجتماعی: اثرپذیری از حوزه سیاستگذاری اجتماعی
The economists and social scientists of the 20th century were very much concerned with the clarification of the observed differences among countries in terms of economic development. But even later, with the introduction of advanced analytical instruments, the above-mentioned task was not realized. Moreover, the professionals who were practically involved with the development projects came to t...
متن کاملComparison of Social Lifestyle of Employed Women and Housewives in Gilane-Gharb (Case Study: Young Women Aged 25-40 Years Old)
The purpose of this study is to compare the social lifestyle of employed women and housewives in Gilane-Gharb (case study: young women aged 25-40Years old). The sampling method was clustered and the sample size of 400 people was based on Cochran's formula with the help of a researcher-made questionnaire, which included 100 questions. The necessary information was added to the data. The result s...
متن کاملNoise Trading Approach of Capital Asset Pricing at Tehran Stock Exchange
Noise traders as one of the key elements of the market play a significant role in determining the market volatilities, returns, and stock market mispricing. Hence, this study attempts to scrutinize the role of noise trading in capital asset pricing. Therefore, by using daily data, samples including 14105 data of 200 companies listed on stock exchange were selected and noise trading index was es...
متن کاملLong- Run Movements of the Parallel Market Premium in the Pre-Exchange Rate Unification Period in Iran
The purpose of this paper is to explain the causes of long-run movements in the parallel market premium in the pre-and-post revolution Iranian economy. The paper suggests that the premium is affected by both real and monetary shocks. Non-spurious co-integration results indicate that negative oil revenue shocks and a revolution-induced exogenous capital outflow caused the parallel market paralle...
متن کاملThe Effects of Physical, Human and Social Capitals on the Entrepreneurship Level of Economic actors in Shahid Salimi industrial town of Tabriz: Structural Equations and Order Logit Models
The main purpose of this study is to investigate the effects of physical capital, human capital and social capital on the entrepreneurship level of individuals, using structural equations model and order logit model in Shahid Salimi industrial town of Tabriz in 2016. The data were collected form 121 economic activist who were randomly selected form the population. The empirical results show tha...
متن کامل