Bryan Caplan on the Case Against Education
EconTalk
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Credentialing Over Knowledge: The Sheepskin Effect
The sheepskin effect illustrates that earning a diploma has significant market value, overshadowing the actual knowledge gained during education. Research indicates that individuals with partial college education do not significantly outperform those without any college experience, implying that the completion of a degree rather than the education itself is what drives labor market rewards. This emphasizes the importance of credentials as signals in the job market, suggesting that the ability to finish education may be more valuable than the knowledge acquired.
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