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Theory

  • Nico Gießmann

摘要

Spence (1973) introduced the fundamentals for understanding the job market in his job market signaling theory, which characterizes information asymmetry in the job market. The principal-agent problem in the job market arises when employers (principals) cannot observe the abilities of applicants (agents) perfectly before hiring. Moreover, applicants are imperfectly informed regarding the qualities of a job and work environment.