Question

What’s the most important aspect of a college degree for getting the job you want? Explain.

What’s the most important aspect of a college degree for getting the job you want? Explain.

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Answer #1

The most important aspect of a college degree for getting the job you want is signaling. In labor market, it is important for the employer to differentiate between the various laborers, in order to give the job to the one who is the most efficient. In labor market, there is asymmetric information about the laborers. The asymmetric information would lead to adverse selection, which in turn would cause inefficiency in the market and hence inefficient outcome. So for a labor, it is very important to signal and show how he or she is different from others and get the desired job.

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