VOLUME IX
AUTUMN 2001

SIGNALLING HYPOTHESIS VERSUS THE HUMAN CAPITAL THEORY
 
FERNANDO BARCEINAS
Universidad Autónoma Metropolitana, México
JOSEP OLIVER
JOSÉ LUIS RAYMOND
JOSÉ LUIS ROIG

Universidad Autónoma de Barcelona
 
In this paper a set of procedures is employed to test the signalling hypothesis versus the human capital hypothesis as the more adequate explanation of wages in Spain. We use information from different sources (Household Budget Survey 1990/1991, Continuous Household Budget Survey 1985-1996, European Household Panel 1994 and Wage Structure Survey 1995) and find, as a general conclusion that, while a weak impact of signalling should be considered, the human capital theory explains the greater part of the wage differentials in Spain.
 
Key words: earning equation, signalling, "sheepskin" effects.
JEL classification: I21.

TO DOWNLOAD THIS PAPER