The Importance of Signaling in Human Capital Development

The debate in this centers around the concept of signaling versus human capital development. We think about education as job training when it is really more of a passport to the real training, which happens on the job. The difference is like, if we all go to school and get a useful skills, our whole society can get richer. But if what the mainly we're doing in school is all going there and getting stamps in our forehead, you cannot have a stamp based economy.