This article discusses the claim made by Altonji and Pierret (AP) (1997) and Lange (2007) that a high Speed of Employer Learning (SEL) indicates a low value of Job Market Signalling (JMS). It is first discussed intuitively in the light of Spencés original model and then evaluated in a simple extension of a model developed by AP (1997). The analysis provided indicates that, if Employer Learning (EL) is incomplete, a high SEL is not necessarily indicative of a low value of JMS.
ASJC Scopus subject areas
- Economics and Econometrics