Required reading on this topic is the signaling model of education, here's an example by Bryan Caplan: http://econlog.econlib.org/archives/2011/11/the_magic_of

Required reading on this topic is the signaling model of education, here's an example by Bryan Caplan: http://econlog.econlib.org/archives/2011/11/the_magic_of_ed.html http://econlog.econlib.org/archives/2011/11/the_magic_of_ed....