Education choices and job market characteristics

We propose a simple three-stage model where heterogeneous schools compete via tuition fees, individuals with the ex-ante unknown ability make their education choices to (eventually) get a diploma and reveal their ability, and finally the job market determines the assignment of workers to firms and t...

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Detalles Bibliográficos
Autores: Liu, Qianshuo, Macho Stadler, Inés|||0000-0002-2415-7972
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:271349
Acceso en línea:https://ddd.uab.cat/record/271349
https://dx.doi.org/urn:doi:10.1016/j.econlet.2023.110985
Access Level:acceso abierto
Palabra clave:Education choices
Skills
Job market
Descripción
Sumario:We propose a simple three-stage model where heterogeneous schools compete via tuition fees, individuals with the ex-ante unknown ability make their education choices to (eventually) get a diploma and reveal their ability, and finally the job market determines the assignment of workers to firms and the equilibrium wages. In equilibrium, wages in the labor market and schools' fees and individuals' school choices are strongly related. We also analyze the effects of the existence of a public school or a subsidy on social welfare.