uni is a binary [0,1] with several tiered exceptions. value to the degree is primarily as a sorting / funnel. as a result, its not really going to be linear. Th

uni is a binary [0,1] with several tiered exceptions. value to the degree is primarily as a sorting / funnel. as a result, its not really going to be linear. The problem with the current pricing is that what was once a "hack" (using the degree as a legal iq proxy) is now so far out of wack with the information content of the degree itself. After all, the distribution of iq doesn;t really change. so nobody is in aggregate all that better off by paying more for an iq test. there is sureley some productivity gains by "better" educaton over time (and these accrue to both students and to economies), but again...the rents are extracted from this production by people in structural positions of power (ie, not "productivty" in the normal sense; these are people who have the ability to get paid for not destroying value), long before they accrue to the more productive economic agents. This disconnect between marginal productivity and actual wages for marginal work is evident in other data, eg http://www.nytimes.com/2013/12/30/opinion/america-in-2013-as-told-in-charts.html http://www.nytimes.com/2013/12/30/opinion/america-in-2013-as...