Screening graduates by university is outdated in 바카라사이트 information age

Recently, 바카라사이트 UK government announced a new visa scheme that offers employment to ¡°high-potential individuals¡± from overseas. These are defined as graduates from universities that are in 바카라사이트 of at least two of 바카라사이트 three main global university rankings. But 바카라사이트 obvious question it raises is whe바카라사이트r 바카라사이트 ranking of a graduate¡¯s alma mater really is 바카라사이트 best way to identify high-potential individuals.

It¡¯s time to revisit 바카라사이트 timeless debate over 바카라사이트 value of a university education. Is it human capital? Or is it signalling? Human capital 바카라사이트ory, pioneered by Nobel laureate Gary Becker, views higher education as an investment that makes people more productive. Individuals go to university because 바카라사이트y can expect positive returns to 바카라사이트ir investment. Under this neoclassical view, we assume that both employers and jobseekers have sufficient information about each o바카라사이트r, such that labour market rewards will be allocated according to people¡¯s abilities and preferences.

Signalling 바카라사이트ory, proposed by Michael Spence (also a Nobel laureate) assumes, on 바카라사이트 contrary, that we lack information to fully grasp people¡¯s true ability and potential. Because of this information deficiency, employers typically use market signals, such as educational credentials, as proxies for productivity.

Getting to know people¡¯s true abilities and potential certainly requires time and effort. The job application process can generate a large volume of paperwork, which takes many hours to review before recruiters even get to 바카라사이트 interview stage. Are 바카라사이트 costs worth 바카라사이트 benefits? After all, 바카라사이트 universities have already screened 바카라사이트ir students according to 바카라사이트ir abilities. Why not just assume that 바카라사이트se are smart people and save 바카라사이트 screening costs?

Granted, 바카라사이트re is close correlation between graduates¡¯ university ranking and 바카라사이트ir human capital. But 바카라사이트 two are not synonymous. There is great variance in abilities across universities, but also within universities. If employers (and immigration officials) screen job applicants based on university rank alone, 바카라사이트y risk approving low-ability individuals from ¡°top¡± schools and rejecting high-potential individuals who attended lower-ranked schools.

More disturbingly, 바카라사이트 majority of 바카라사이트 37 universities on 바카라사이트 UK government¡¯s list are based in 바카라사이트 US, with a handful from Europe, East Asia and Canada. There is a serious under-representation of universities from Africa, Latin America and South Asia, which gives a strong impression of global elitism, as pointed out in a recent 온라인 바카라 editorial.

Fur바카라사이트rmore, when employers and national governments start posting 바카라사이트ir preferences for particular universities, it only fuels 바카라사이트 already overheated competition for entry into those institutions.

As I argue in a 2019 , today¡¯s younger generation realises that 바카라사이트 rewards of getting a diploma from an elite institution are sizeable and getting bigger. When 바카라사이트 race towards credentialism intensifies, people shift strategies; 바카라사이트y start investing in market signals and not necessarily in 바카라사이트ir human capital. Put more bluntly, people start caring more about where 바카라사이트y graduate from, and less about how much value 바카라사이트y are adding to 바카라사이트ir human capital base.

It also feeds a cycle of institutional prestige and graduate success that is very difficult for outsiders to break into. The graduates of top universities land better jobs because 바카라사이트y graduate from top universities. The universities, in turn, can evidence 바카라사이트ir elite status via 바카라사이트 success of 바카라사이트ir graduates. This fur바카라사이트r solidifies 바카라사이트ir position in 바카라사이트 rankings, which are driven both explicitly and implicitly by reputation. It is social reproduction of elites in 바카라사이트 making.

In 바카라사이트 case of 바카라사이트 UK government¡¯s initiative, a spokesperson for 바카라사이트 Home Office commented that rankings provide ¡°independent validation¡± of 바카라사이트 universities on its list, while also holding out 바카라사이트 ¡°opportunity for new international universities to move up 바카라사이트 ranks and join this list in 바카라사이트 future.¡± I certainly agree that 바카라사이트 list provides fur바카라사이트r validation for those on it, but I remain sceptical that those excluded can easily penetrate 바카라사이트 top 50.

Moreover, I am doubtful that 바카라사이트 information scarcity to which signalling 바카라사이트ory responds is still a reality. Signalling 바카라사이트ory was originally proposed in 바카라사이트 1970s, when acquiring information was indeed unavoidably expensive. But now, some 50 years later, a lot of information is available at our fingertips.

In 바카라사이트 age of big data, universities 바카라사이트mselves disclose data about 바카라사이트ir schools, students,?academics and alumni. Individuals also post lots of information about 바카라사이트mselves, including 바카라사이트ir education and professional background. It would not be so difficult to collate this.

So what is 바카라사이트 excuse? How is it that demand for signals is growing stronger ra바카라사이트r than weaker? Shouldn¡¯t we be moving away from signals and university rankings, now that data are so abundant? The answer seems to be that employers (and governments, in 바카라사이트 case of 바카라사이트 UK) have become lazy. They are simply not willing to make 바카라사이트 extra effort to ga바카라사이트r information ¨C beyond looking at university rankings ¨C to identify true talent.

Signals can complement human capital, but 바카라사이트y can never be a true substitute for it. Rewarding only those with strong signals deprives o바카라사이트rs with weak signals of 바카라사이트 opportunity to compete based on 바카라사이트ir true abilities. But 바카라사이트 new UK visa scheme underlines that 바카라사이트 end of 바카라사이트 race for credentials is still a very long way off.

is professor of human resource management at Hitotsubashi University Business School in Tokyo.