Human Capital and Signaling

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Wages in America differ greatly among workers. Why is that? One reason includes differences in human capital — tools of the mind. Education is one of the biggest investments people make to increase their human capital. Which college majors offer the greatest returns? And are all returns on education due to human capital? A college degree can “signal” other factors as well, and we discuss what is commonly known as the “sheepskin effect.” In this video, we also discuss how globalization has affected wages in the U.S.

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Also consider how a higher ranked university could signal ability alot stronger, resulting in a large returns to investment differential between higher ranked and lower ranked graduates. Not all universities are a justifiable investment decision, and can be a waste of resources and time for some. While human capital theory is amazing, I do think that its applications are slightly out of control with all these random universities popping up.

mishapercy
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Yeah, so lucky to work 2 or 3 jobs, no vacations, no medical, mo sick days, no maternity leave.... So lucky... And working 60-80+ yes per week still cannot afford decent apartment in decent neighborhood... Lucky if able to afford apt at all.. So lucky... Americans making less than Europeans but paying much more.

arthurbabayev
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Lucky...? What's so lucky about working hard and innovating and behaving according to standards that encourage a peaceful prosperous society?

Mujangga
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This man must have a PHD in BS . Must have been paid by colleges. Advice, do your research before you fall into incredible life time debt!

profpmartin