When pay spikes, so does education itself. “Finish your degree, then rest on your laurels” is the classic student strategy. One-third of the U.S. population spends 12 years in school, gets a high school diploma, then stops. Only 2% quit high school right after eleventh grade. One-seventh spends 16 years in school, gets a bachelor’s degree, then stops. Only 2% quit college right after their junior year.6 Signaling has an instant explanation for all the spikes. Why does pay spike for degree years? Because finishing sends employers a much better signal than quitting. Why does education spike for
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