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Title: Essays on Human Capital Investment and Labor Markets
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1. Klopfer, John Bodian
Essays on Human Capital Investment and Labor Markets
Ph.D. Dissertation, Department of Economics, Princeton University, 2017
Cohort(s): NLSY79
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Armed Forces Qualifications Test (AFQT); Cognitive Ability; Skilled Workers; Skills; Wage Determination

Permission to reprint the abstract has not been received from the publisher.

Chapter 2 studies a puzzle in the literature on employer learning and wage setting. It has been argued that employers are poorly informed about the cognitive skills of their workers, so that the most skilled workers have a strong incentive to reveal information to reap higher wages. The puzzle is why cognitive testing isn't in greater use. My coauthor Maria Zumbuehl and I show that entry-level employers already have access to highly predictive, publicly observed proxies of the relevant cognitive skills, making testing redundant.
Bibliography Citation
Klopfer, John Bodian. Essays on Human Capital Investment and Labor Markets. Ph.D. Dissertation, Department of Economics, Princeton University, 2017.