learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …Research on employer learning has provided important insights into the dynamic process that determines individual wages …, especially during the early part of a worker's career. However, the recent evidence on the absence of employer learning for …

private returns to education within the employer learning framework of Farber and Gibbons [1996] and Altonji and Pierret [2001 … and 30% to education signaling workers' ability. …

. -- Signaling ; job markets ; education ; employer learning ; intuitive criterion …This paper extends the job market signaling model of Spence (1973) by allowing firms to learn the ability of their … employees over time. Contrary to the model without employer learning, we find that the Intuitive Criterion does not always …

studying (the pure human capital model) or whether studying has no effect on productivity (the pure signaling model). Thus … help to distinguish between human capital and signaling. However, with longitudinal data, RDD can be used to estimate the … speed of employer learning, since RDD coefficients are direct estimates of (differences in) expectation errors. …

A pre-condition for employer learning is that signals at labor market entry do not fully reveal graduates' productivity …

understand better how subjects with different cognitive abilities learn differently, we estimate a structural model of learning … ability to that of character skills, and find that both cognition and personality affect behavior and learning. More agreeable …

learning indicates a low value of job market signaling. The claim is first discussed intuitively in light of Spence’s original … indicates that, if employer learning is incomplete, a high speed of employer learning is not necessarily indicative of a low … value of job market signaling. …

The empirical literature on employer learning assumes that employers learn about unobserved ability differences across … hypothesis and how they have been used to quantify the contribution of Job Market Signaling and human capital in measured returns … to education. While the empirical basis is still thin, the results suggest that Signaling contributes at most about 25 …