Resource title

Grade Inflation, Social Background, and Labour Market Matching

Resource image

image for OpenScout resource :: Grade Inflation, Social Background, and Labour Market Matching

Resource description

A model is presented where workers of differing abilities and from different social backgrounds are assigned to jobs based on grades received at school. It is examined how this matching is affected if good grades are granted to some low ability students. Such grade inflation is shown to reduce the aggregate wage of the lower class workers because employers use social origin as a signal for productivity if grades are less than fully informative. Moreover, the high-ability students from the higher class may benefit from grade inflation since this shields them from the competition on the part of able students from the lower classes.

Resource author

Robert Schwager

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24766

Resource license

Adapt according to the presented license agreement and reference the original author.