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Signaling and Screening

Completing your degree is probably to be a significant signal which will help you secure a well-paid job along with a bright future if potential employer: (1) want to ensure that job applicants have already obtained important amounts of specific human capital. (2) use attainment of a degree as a significant screening device. (3) intend to invest heavily in general human capital by on-the-job training. (4) expect to reduce labor costs through aggressive policies of automation. (5) are under court orders to hire employees without regard to race, religion, creed, ethnicity, professional or sex qualifications.

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