Friedman (1962) observed that the ability of firms to acquire and maintain reputations for quality is a key ingredient for the efficient provision of goods and services in a market economy. This paper explores the implications of school reputation for skill acquisition and labor market outcomes...

Spence (1973) noted that individuals' choice of educational quantity--measured by years of schooling--may stem partially from a desire to signal their ability to the labor market. This paper asks if individuals' choice of educational quality--measured by college reputation--may likewise signal...

Friedman (1962) argued that a free market in which schools compete based upon their reputation would lead to an efficient supply of educational services. This paper explores this issue by building a tractable model in which rational individuals go to school and accumulate skill valued in a...