based on grades received at school. It is examined how this matching is affected if good grades are granted to some low …

This paper analyzes the problem of matching heterogeneous agents in a Bayesian learning model. One agent gives a noisy … cross-matching occurs, so that agents of low knowledge catch up with those of higher one. It is shown that: (i) a greater … informational component in production makes cross-matching more likely; (ii) as the new technology is mastered, production becomes …

We test for the signalling hypothesis versus human capital theory using the Wiles test (1974) in a country which has …

similar credentials) on wages. Using a simple model of asymmetric information, I show that RDD estimates the information value … of a diploma. A positive information value arises if employers, unable to observe the test score that determines diploma … information value regardless of whether workers' productivity is solely determined by acquisition of knowledge and skills through …