An employer has narrowed a list of applicants down to two individuals. The two candidates look
nearly identical on paper, but one of them has earned a four-year college degree. The employer
decides to offer employment to the college graduate. What does this example illustrate?
(1 point)
the income effect
the screening effect
the learning effect
the substitution effect
1 answer
The example illustrates the screening effect, which is the concept that having a college degree can serve as a signal to potential employers of certain desirable qualities or characteristics in a job candidate.
1 answer