BibTeX
@MISC{Borghans03doesscreening,
author = {Lex Borghans},
title = {Does Screening Change the Way Students Learn? ∗},
year = {2003}
}
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Abstract
In this paper I investigate changes in how long students stay in education, but also how they learn, when screening becomes more important. Using a human capital production function with different learning activities as inputs I show that when education becomes a better signal, initially students will increase study efforts, but also shift from unobservable to observable activities. This shift will lower the return to education and therefore – when the importance of screening further increases – also reduce efforts. By comparing study behavior in 69 European regions I find indeed a reduction in hours spend on learning. I show that empirically the shift in learning activities corresponds to a decrease in high quality education and good testing to freedom to choose, and combining learning with work and experience abroad. An important implication is that screening not necessarily leads to overinvestments in education, but can also lead to inefficient learning. Tax policies can not solve these inefficiencies and therefore regulations of the curriculum seem to be necessary.
