This paper proposes a theory of endogenous transmission of social status through signalling in the labour market. A signalling game is analysed, in which education, acting as a signalling good, determines one's position in society. The economy's degree of inequality is shown to be a determinant...

Tight labor markets driven by resource booms could increase the opportunity cost of schooling and crowd out human capital formation. For oil-producing economies such as the Province of Alberta, the OPEC oil shocks during the period from 1973 to 1981 may have had an adverse long-term effect on...

The authors analyze how firms of different sizes reward measured skills and unmea¬sured ability. The empirical methodology, based on nonlinear instrumental variable estimation, permits direct estimation of the returns to unmeasured ability by firm size. An analysis of panel data from the...