The signaling effect leads to college graduates earning more because a college degree signals that a person has learned the required job skills.

Question

Quizplus · Accepted Answer

The signaling effect suggests that a college degree can indicate to employers that a person is more capable or intelligent, rather than solely indicating that they have learned specific job skills. It's about the inherent qualities the degree signals (e.g., diligence, intelligence) rather than just the acquired knowledge.

The Signaling Effect Leads to College Graduates Earning More Because