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Several labor markets, including the job market for new Ph.D. economists, have recently developed formal signaling mechanisms. We show that such mechanisms are harmful for some environments. While signals transmit previously unavailable information, they also facilitate information asymmetry that leads to coordination failures. In particular, we consider a two-sided matching game of incomplete information between firms and workers. Each worker has either the same ”typical” known preferences...
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The three most common school choice mechanisms are the Deferred Acceptance mechanism (DA), the classic Boston mechanism (BM), and a variant of the Boston mechanism where students automatically skip exhausted schools, which we call the adaptive Boston mechanism (ABM). Assuming truthful reporting, we compare student welfare under these mechanisms both from a conceptual and from a quantitative perspective: We first show that, BM rank dominates DA whenever they are comparable; and via limit...
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We apply social network analysis to examine school choice in the second-largest Russian city Saint-Petersburg. We use online data (“digital footprints”) of between-schools comparisons on a large school information resource shkola-spb.ru. This resource allows to identify clusters of city schools that have been compared to each other more often and thus reflect choice preferences of students and parents looking for a school. Network analysis is conducted in R (‘igraph’ package). For community...
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