Disentangling the College Wage Premium: Estimating a Model with Endogenous Education Choices

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Human Capital Theory (2014, background): “Fang (2001) reminded of these formal and informal signaling procedures in initial hiring: If workers’ productivities are in fact not perfectly observed (which is particularly true for newly hired workers), then the firms would have to infer the productivities from noisy signals such as interviews,…”
Beyond Signaling and Human Capital: Education and the Revelation of Ability (2008, unknown): “where Cx = rs + λxq + H̃(x) + σ(2) x 2 Equation (17) gives the wages paid to a worker given (z̄, q, s, Y ).”