Do employers use education as a signal for ability in developing countries? Evidence from Ghana

Strobl, Eric
(2004) Applied Economics Letters — Vol. 11, n° 4, p. 259-261 (2004)

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  • Strobl, EricUCLouvain
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Abstract
This study investigates whether employers in developing countries use education as a signal for employees' productivity using data for Ghana manufacturing. Evidence is found supportive of this for individuals who were not hired through direct contacts in the firm, and thus for individuals for whom employers are likely to have relatively less information about their productive abilities. This result seems to rest on adequately controlling for on-the-job-training.
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Strobl, E. (2004). Do employers use education as a signal for ability in developing countries? Evidence from Ghana. Applied Economics Letters, 11(4), 259-261. https://doi.org/10.1080/13504850410001674920 (Original work published 2004)