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I wonder if a form of Gresham's Law (bad money drives out good) [1] may come into play. Basically if all university diplomas are effectively considered equal,
by kqr2 11y ago
I wonder if a form of Gresham's Law (bad money drives out good) [1] may come into play. Basically if all university diplomas are effectively considered equal, then candidates from top tier schools will instead apply to places where they perceive their diploma carries more weight. In other words, if we think of a diploma as a form of currency, candidates will prefer to spend it at a place where it is valued more highly.
1. https://en.wikipedia.org/wiki/Gresham's_law https://en.wikipedia.org/wiki/Gresham's_law
- tpeo 11y agoNot Gresham's Law per se, as it is specific of money. But what you're describing is essentially a form of adverse selection (see Akerlof's "Market for Lemons"). If employers lower their wage offers below the reservation wage of graduates from prestigious schools, then they would leave the "undifferentiated" job market. But there might be more to it. Graduates from better schools might still accept job offers if they could hope to get a raise once their true value is discovered.
- wpietri 11y agoI cannot think of a happier outcome than companies who value fancy credentials over effectiveness ending up with the employees who would be upset that they're being evaluated on how they actually perform rather than the prestige of their degree. Then I'd never have to work with anybody like that again.
- beachstartup 11y agoaka proxies, something the elite are very good at