Use of the decomposition technique to test the educational screening hypothesis |
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| Authors: | Irvin B Tucker III |
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| Institution: | Department of Economics, University of North Carolina at Charlotte, Charlotte, NC 28223, U.S.A. |
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| Abstract: | The principal issue addressed in this article is whether or not education directly creates productivity and earnings as taught by traditional human capital theory. If not, an alternative argument could be that employers use education as a screening device to select employees. Employing the decomposition technique to compare income for self-employed and private sector employees, evidence is presented which rejects the screenist theory. |
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