College graduates are paid more, on average, partly because the act of finishing college signals that they are more likely to be a good employee.

Question

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Studies have indicated that college graduates earn more than high school graduates due to factors such as greater career opportunities and increased skills, but another contributing factor is that the act of completing college signals to employers that they are likely to be more dedicated and responsible employees.

College Graduates Are Paid More, on Average, Partly Because the Act