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American Economic Journal: Microeconomics: Vol. 4 No. 1 (February 2012)

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Fraternities and Labor-Market Outcomes

Article Citation

Popov, Sergey V., and Dan Bernhardt. 2012. "Fraternities and Labor-Market Outcomes." American Economic Journal: Microeconomics, 4(1): 116-41.

DOI: 10.1257/mic.4.1.116

Abstract

We model how student choices to rush a fraternity, and fraternity admission choices, interact with signals firms receive about student productivities to determine labor-market outcomes. The fraternity and students value wages and fraternity socializing values. We provide sufficient conditions under which, in equilibrium, most members have intermediate abilities: weak students apply, but are rejected unless they have high socializing values, while most able students do not apply to avoid taint from association with weaker members. (JEL C72, J24, J31, Z13)

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Authors

Popov, Sergey V. (Centre for Advanced Studies, National Research U Higher School of Economics, Moscow)
Bernhardt, Dan (U IL)

JEL Classifications

C72: Noncooperative Games
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J31: Wage Level and Structure; Wage Differentials
Z13: Economic Sociology; Economic Anthropology; Social and Economic Stratification

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