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)

Question

Responses

the screening effect
the screening effect

the substitution effect
the substitution effect

the learning effect
the learning effect

the income effect

Answer 1

This example illustrates the screening effect. The screening effect refers to the idea that employers use educational qualifications as a filter to determine a candidate's potential job performance and suitability, assuming that those who have completed a college degree possess certain skills or qualities that are desirable in an employee.