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- W2555416615 abstract "Individuals invest in education to signal innate abilities to future employers. The ability certi…cates (school diplomas and university degrees) are, however, a noisy measure of educational attainment. The curricula do not always test the quali…cations required by the employers and because cheating can not be fully prevented the exam grades do not always show the true abilities within the tested discipline. In this paper we extend the standard two type Spence model with a noisy signaling technology. Moreover, we assume the certi…cation institution –signal intermediary - to be an independent player in the game with it’s own objectives. We show that, with perfectly informed students pro…t maximising universities, maximise also social welfare, although at the expense of other players." @default.
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- W2555416615 date "2010-01-01" @default.
- W2555416615 modified "2023-09-27" @default.
- W2555416615 title "Noise in a signaling model" @default.
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