hidden information - signaling model

Question 1

if no information is availiable to the firms in the spence signalling model, what will the firms pay the workers?

Answer 1

the firms will pay the competitive wage which is equal to the expected productivity to all workers resulting in low productivity workers being over paid and high productivity workers being under paid

Question 2

what are the 4 stages of timing in the signalling game?

Answer 2

t=1 - workers privately observe their types
t=2 - workers choose an education level e
t=3 - firms observe workers education level and make contract offers with wage w(e) where w(e) is the firms conditional expectation of probability
t=4 - the job contract is executed