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Full-Text Articles in Education
Trade And Divergence In Education Systems, Fali Huang, Pao-Li Chang
Trade And Divergence In Education Systems, Fali Huang, Pao-Li Chang
Research Collection School Of Economics
This article presents a theory on the endogenous choice of education policy and the two-way causal relationship between trade and education systems. A country’s education system determines its talent distribution and comparative advantage; the possibility of trade by raising the returns to the sector of comparative advantage in turn induces countries to further differentiate their education systems and reinforces the initial pattern of comparative advantage. Specifically, the Nash equilibrium choice of education systems by two countries interacting strategically are necessarily more divergent than their autarky choices, and yet less than what is socially optimal for the world.
Job Market Signaling With Human Capital Investment, Gea Myoung Lee, Seung Han Yoo
Job Market Signaling With Human Capital Investment, Gea Myoung Lee, Seung Han Yoo
Research Collection School Of Economics
In this paper, we consider the social value of signaling by recasting the Spence's (1973) signaling model in a causal relationship: human capital investment is necessary to reduce the marginal cost of signaling. Our model contains distinct features: (i) the choice of signaling a§ects the level of human capital investment and (ii) the proportion of high and low type in the entire workers is endogenously determined. From the perspective of welfare, we compare two contrasting forms of signaling, separating and pooling, and Önd that the choice of a proper form of signaling is dependent on how each signaling induces the …