Michael Spence’s Nobel Prize–winning theory of signaling, it was just this: College may teach students nothing of use in a job. It is particularly costly, though, to complete for those who do not have basic skills. Those who have solid basic skills can then separate themselves from those who do not by acquiring a college degree. The human resource departments of companies seem to believe something like this, and have simplified hiring by demanding a college degree even when it is not needed for the position they need to fill.
