Hvide, H.K. - Foerder Institute for Economic Research, Eitan Berglas … - 1999
role of education on the allocation of talent in a two-sector model where education provides workers information about …-efficient) induces the mediocre to educate, while the least and the most able skip education. When workers know more than firms about … their abilities, the equilibrium set expands to include equilibria where education serves as a signal. Signaling is …