ERIC Number: ED182300
Record Type: RIE
Publication Date: 1975-Jan
Reference Count: 0
On the Efficiency of a Competitive Equilibrium with Education as a Screening Device.
Thompson, Velma M.; Thompson, Earl A.
This paper critiques the 1973 Spence-Arrow model of employer decision-making based on using the job applicant's educational credentials as a screening device to identify pre-existing differences in the abilities of prospective workers. The first section of the paper develops a model similar to the Spence-Arrow model, dropping the assumption that additional education always communicates a higher innate ability to work. The second section extends the critique established in the first part, and the final section of the paper presents a test of alternative models using data from a sample of World War Two veterans. (LH)
Descriptors: Decision Making, Educational Status Comparison, Employer Attitudes, Employment Qualifications, Evaluation Criteria, Job Applicants, Screening Tests
The Rand Corporation, 1700 Main St., Santa Monica, CA 90406 ($3.00)
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Rand Corp., Santa Monica, CA.