Michael Spence facts for kids
Quick facts for kids
Michael Spence
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Spence in 2008
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| Born | November 7, 1943 Montclair, New Jersey, US
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| Institution | Harvard University Stanford University SDA Bocconi School of Management New York University |
| Field | Microeconomics, labor economics |
| Alma mater | Harvard University, (Ph.D.) University of Oxford, (B.A.) Princeton University, (B.A.) |
| Doctoral advisor |
Kenneth Arrow Thomas Schelling |
| Influences | Richard Zeckhauser |
| Contributions | Signaling theory |
| Awards | John Bates Clark Medal (1981) Nobel Memorial Prize in Economics (2001) |
| Information at IDEAS / RePEc | |
Andrew Michael Spence (born November 7, 1943) is a famous Canadian-American economist. He won a special award called the Nobel Memorial Prize.
Spence is a professor at the Stern School of Business at New York University. He also used to be a dean and professor at the Stanford Graduate School of Business.
He shared the 2001 Nobel Memorial Prize in Economic Sciences. He won it with George Akerlof and Joseph E. Stiglitz. They won for their ideas about markets where people don't have all the same information.
Contents
Michael Spence's Career
Spence is well-known for his idea called the "job-market signaling model." This idea helps us understand how people show their skills to employers.
Understanding Signaling
Imagine you are looking for a job. How do you show a company that you are good at something? Spence's model says that getting an education can be a "signal."
- It costs time and money to get an education.
- People who are very skilled might find it easier to get an education.
- Employers know this. So, they might pay more to people with more education.
- This is because they believe more educated people are often more skilled.
- The education itself doesn't even have to teach new skills. It just needs to show how capable someone is.
His Education Journey
Michael Spence went to high school at the University of Toronto Schools. Later, he came back to the Rotman School of Management at the University of Toronto to help advise them.
He studied at Princeton University and earned a degree in philosophy in 1966. Then, he went to Magdalen College, Oxford in England as a Rhodes Scholar. There, he studied mathematics and got another degree in 1968.
Spence then went to Harvard University for his advanced studies in economics. He earned his Ph.D. in economics in 1972. His main teachers were Kenneth Arrow and Thomas Schelling. His Ph.D. paper was about "Market signalling," which became a very important idea.
Later Work and Roles
After his time at Stanford, Spence joined Oak Hill Capital Partners. He also became the Chairman of the Commission on Growth and Development. This group looks at how countries can grow their economies.
He started teaching at New York University in 2010. In 2011, he also joined the SDA Bocconi School of Management in Italy.
Spence is also a senior expert at Stanford University's Hoover Institution. He helps advise on how the internet is governed globally. He is also part of the Berggruen Institute's 21st Century Council.
He has written three books and 50 articles. He also writes regularly for Project Syndicate, which is an international newspaper group. He believes that very fast stock trading, called high-frequency trading, should be stopped.
Interestingly, Bill Gates and Steve Ballmer were once in one of his economics classes at Harvard. They later said they didn't attend much but studied hard to pass the final exam!
Honors and Awards
Michael Spence has received many important awards for his work.
- He is an Honorary Fellow of Magdalen College, Oxford, where he studied.
- He won the Nobel Memorial Prize in Economic Sciences in 2001.
- He also received the John Bates Clark Medal in 1981. This award is given to the best American economist under 40.
In 1976, he became a Fellow of the Econometric Society. In 1983, he became a member of the American Academy of Arts and Sciences.
Personal Life
Spence currently lives in Milan, Italy. He lives there with his wife and children.
See also
- List of economists
