Fraternities and labor-market outcomes

Sergey V. Popov, Dan Bernhardt

Research output: Contribution to journalArticle

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).

Original languageEnglish (US)
Pages (from-to)116-141
Number of pages26
JournalAmerican Economic Journal: Microeconomics
Volume4
Issue number1
DOIs
StatePublished - Feb 2012

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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