A Test of Employer Learning in the Labour Market for Young Australians

23 Pages Posted: 7 Jun 2006  

Stephen L. Cheung

The University of Sydney; IZA Institute of Labor Economics

Date Written: October 2006


This paper reports a test of employer learning for a panel of young Australian men. The information contained in a test score is found to already be observed by employers at the time a worker enters the labour market. However the return to parental education is found to increase with experience, indicating that the attributes reflected in this variable are initially harder for employers to observe, and that learning indeed occurs with respect to them. When the sample is partitioned by hiring channel, these learning effects are confined to workers who were recruited through less informative channels.

Keywords: employer learning, measured ability, educational sorting

JEL Classification: J24, J31

Suggested Citation

Cheung, Stephen L., A Test of Employer Learning in the Labour Market for Young Australians (October 2006). Available at SSRN: https://ssrn.com/abstract=906691 or http://dx.doi.org/10.2139/ssrn.906691

Stephen L. Cheung (Contact Author)

The University of Sydney ( email )

School of Economics
Merewether Building H04
Sydney, NSW 2006
+61 2 9351 2135 (Phone)
+61 2 9351 4341 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

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