ORDINE, Patrizia; ROSE, Giuseppe - In: Rivista Italiana degli Economisti 14 (2009) 2, pp. 267-292
This paper studies educational choices in a signaling setting in segmented labor markets. We show that in the presence of heterogeneous working ability imperfectly correlated with schooling costs, equilibria characterized by overeducation may arise. The quality of education is crucial in...