Screening and signaling in the labor market are inefficient
A) unless college costs are relatively low.
B) unless they result in a better job match.
C) because the benefits are spread out over many firms.
D) because they raise the wage paid to all workers.

Question

Quizplus · Accepted Answer

Screening and signaling in the labor market can be inefficient if they do not result in a better job match. However, if the process of signaling and screening effectively matches workers with their most productive work, then it can be considered efficient. College costs, benefits spread out over many firms, or raising the wage paid to all workers are not directly related to the efficiency of screening and signaling in the labor market.

Screening and Signaling in the Labor Market Are Inefficient