Wednesday, April 09, 2008

Criticisms of the Signalling Model

"Gary Becker, Tyler Cowen, and Arnold Kling have all recently criticized the signaling theory of education". This topic is discussed on Econlog by Bryan Caplan. The quotes he uses are shown below.

First, Becker:

"I believe it [the signaling model] declined because economists began to realize that companies rather quickly discover the productivity of employees who went to college, whether a Harvard or a University of Phoenix. Before long, their pay adjusts to their productivity rather than to their education credentials".

Second, Cowen:

"If education is pure signaling, just give everyone a standardized test in seventh grade and then close up the schools".


Tyler:

"Men are born beasts. But education gives you a peer group, a self-image, and some skills as well. Getting an education is like becoming a Marine. Men need to be made into Marines. By choosing many years of education, you are telling yourself that you stand on one side of the social divide".

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