It is a mystery whether college matters because it creates better human capital or creates signals that indicate graduates completed a long-term task.
What Signals Does a College Degree Really Send?
Some economists have an unexpected reason for the college earnings premium. First, the premium… In 2011, a diploma from a 4-year college meant you would earn 83% more than your high school classmate who did not attend college. Looked at slightly differently (below), the…
Visiting the Labor Market
We might need to adjust how we think about the labor market. Yes, we know that the unemployment rate for February was 8.9% and that 13.7 million people are jobless. However, to encourage thoughts about the future, an M.I.T. economist…
