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Journal of Labor Economics Vol. 25 No. 4 2007

Testing for Asymmetric Employer Learning

Uta Schönberg

University of Rochester

open access

Abstract

Recent evidence suggests that employers acquire more precise information about a worker’s productivity the more time he or she spends in the labor market. The following question arises: Is learning symmetric, that is, do all employers have the same information about workers’ productivity, or is learning asymmetric, that is, does the current employer have superior information about workers’ productivity? This article develops a learning model with endogenous mobility that nests both learning hypotheses. It then proposes new tests for asymmetric employer learning. Overall, learning appears to be mostly symmetric, except possibly when the employees involved are college graduates.

DOI
10.1086/522905
Volume
25
Issue
4
Pages
651-691
Language
en
Sources
openalex crossref

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