Unrecognized News from the Filter Model and Review of the Spence Model

Abstract

The objective of this article is to cross a line of reflection which makes it possible to trace more ‎solid legibility in what is similar to the explanation of the choices of educational investments ‎and the regulation of the labor market.‎

This analysis aims to propose a new approach which adopts as a reference the role of aptitude ‎in determining the future of the labor market, in terms of individual decisions to invest in ‎training and terms of expected productivity about of the signal issued by the diploma.‎The methodology mainly refers to the signal theory and filter theory. In our study, first, we ‎will integrate a new concept to better analyze the different forms of filter (productive and ‎non-productive) on which collective productivity, individual productivity, and profitability ‎largely depend. Second, we reformulate Spence's model by integrating two levels of ‎discrimination and three groups. This breakdown becomes more complex, but it allows a better ‎understanding of the choices, the gains, as well as the balance on the labor market.‎The re-examination of the filter theory exposes the idea of regularizing the university and ‎market system close to the abilities of individuals. The demonstrations also show that the ‎signal effect does not own its assets, it depends on other signals.‎The results of this treaty are applicable in terms of rationalizing the policies of funds intended ‎for training, guiding the functioning of the labor market as well as tackling the problem of ‎unemployment.‎

Codes JEL: E24, E32, G12, J23.

Keywords: Filter; signal; gains; balance; labor market; diploma

DOI: 10.7176/JESD/11-16-21

Publication date:August 31^st 2020