Signaling means "how a good or service gives, shows, or enhances the value of the person who has it." What an elite college degree does is signal the person is

Signaling means "how a good or service gives, shows, or enhances the value of the person who has it." What an elite college degree does is signal the person is in the elite knowledge class. It's a seal of approval. If you graduate from MIT, it signals you are very smart and adept in business, technology, or science. I think his argument is that when the university signals, the teaching part is anti-climatic. In Japan, if you make it into Tokyo University, you are considered the right stuff, and what you learn isn't as important compared to making it there. The assumption is you can be taught or you teach yourself anyways. Human Capital in this case means networking and potential. Being introduced to fellow high achievers, and having the innate ability to achieve high yourself. I think he is pointing out that these days, Lambda could fit those important aspects better than a four year college. The knowledge part matters much less than being approved by high value and high status institutions, and being able to create a professional network of elite people. I don't know my thoughts on this idea, but I hope this is accurate to him and helps understanding.