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The term “employer learning” is typically associated with a class of empirically testable models in which employers learn the productivity of workers over time. In these models, employers are assumed to use schooling attainment and other readily observed signals to predict productivity and set wages at the start of the career; as workers’ careers evolve, true productivity is revealed and the role of schooling in the wage setting process declines.
Source: Light/Mc Gee 2011, USA
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