Arbeitspapier
Grades and Employer Learning
This study examines the labor-market returns of skill signals. We identify the labor-market effect of grade point averages (GPA) by leveraging a nationwide change in the scaling of grades in Danish universities. Results show that a reform-induced increase in GPA that is unrelated to ability causes higher earnings immediately after graduation, but the effect fades in subsequent years. The effect at labor-market entry is largest for individuals with fewer alternative signals and the earnings adjustment occurs both within and across firms. Although employers initially screen candidates based on skill signals, our findings suggest that they rapidly learn about worker productivity.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 14200
- Classification
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Wirtschaft
Education and Research Institutions: General
Demand and Supply of Labor: General
Returns to Education
- Subject
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employer learning
job-market signaling
higher education
- Event
-
Geistige Schöpfung
- (who)
-
Hansen, Anne Toft
Hvidman, Ulrik
Sievertsen, Hans Henrik
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
-
2021
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hansen, Anne Toft
- Hvidman, Ulrik
- Sievertsen, Hans Henrik
- Institute of Labor Economics (IZA)
Time of origin
- 2021
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