Empirical Economics

, Volume 46, Issue 4, pp 1447–1471 | Cite as

The role of hard-to-obtain information on ability for the school-to-work transition

Article

Abstract

When information about the abilities of job seekers is difficult to obtain, statistical discrimination by employers may be an efficient strategy in the hiring and wage-setting process. In this article, we use a unique, longitudinal survey that follows the PISA 2000 students in their early educational and work–life careers. We find that a deviance in the PISA test scores from what one would have predicted based on easy-to-obtain observable characteristics influences the probability of succeeding in the transition from compulsory schooling to a firm-based apprenticeship significantly but in a non-symmetric way. Only those who had a test result below their predicted result have significantly lower chances of getting an apprenticeship. We also find evidence that the importance of hard-to-obtain information on ability is further revealed in the course of the apprenticeship.

Keywords

Statistical discrimination School-to-work transition  PISA 

JEL Classification

I2 J24 J71 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Swiss Federal Institute for Vocational Education and TrainingBernSwitzerland
  2. 2.University of BernBernSwitzerland
  3. 3.CESifoMunichGermany
  4. 4.IZABonnGermany

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