EDUCATION AND SALARY
...he higher price will it be paid at. Yet the degree holders deserve a higher salary. From a pragmatic point of view, to a large extent, a candidate signals that he is of high quality by taking a degree. The crucial determinant of the amount of the salary is the contribution an employee is able to make to his employer. And the highly-educated who have built an insight into a future profession through academic training are more likely to fit for the position, thus making greater contribution to employers, especially in the knowledge-dominated era. Even though what a college graduate has learned is of limited relevance to real-world business anyway, what a recruiter cares about is a candidate’s innate potential. What always happens is that by checking whether potential workers have degrees, firms are able to identify those workers with intrinsic productivity advantages over their peers preliminarily. Such workers are more desirable to firms, and hence offered higher salaries. To the extent higher education facilitates the efficient matching of the best people to the jobs that require them. It should also be appreciated that employees without a degree, however, who enter into working field earlier and learn the knowledge of the same regard but from real-life operations and transactions, will gradually rival their highly educated counterparts and are likely to earn a high sala...