Signaling is the only theory that explains the totality of these otherwise baffling facts. In our society, education is a seal of approval. Employers know it. Workers know it. As seals proliferate, workers need extra seals to upstage the competition. You’ll never apply most of what you study, but so what? Academic success opens doors. A dysfunctional game, but if you refuse to play, the labor market brands you a loser.
