It is a popular idea amongst economists, at least relevant to the non-economist population, that the purpose of higher education is simply to signal to employers the innate skills and qualities of the individuals. Contrary to the popular conception of the purpose of college as a  place to learn necessary skills and and knowledge, the signaling theory purports that college is nothing more than a long test that tells potential employers something about your inherent intelligence and abilities.

One way to test this theory is to ask employers what they want colleges that their future employees may come from to focus on. If they want to those colleges to focus on teaching specific subject matter knowledge then that would be evidence against the signaling theory of education. If they want colleges to focus on testing students in things which in general are innate, like thing similar to I.Q. tests, then that would be evidence in favor of signaling theories; they only want colleges to be more accurate signals.

A recent article on how colleges are striving to be more “revelent” to future careers shines a little light on this issue. Employers are apparently telling colleges that they do not want students to be specializing, but rather learning broad skills. According to a  survey conducted of employers by the American Association of Colleges and Universities,

89 percent said they wanted more emphasis on “the ability to effectively communicate orally and in writing,” 81 percent asked for better “critical thinking and analytical reasoning skills” and 70 percent were looking for “the ability to innovate and be creative.”

Communicating effectively and critical and analytical thinking are skills that can be strengthened and learned in college. On the other hand, are those things that are better learned in school or on the job? I think you can at least make the case that these are skills that are better learned in school, and so this is potentially evidence in favor of non-signaling theories of education, but I could be convinced otherwise.

Innovation and creativity, on the other hand, don’t strike me as the kinds of things colleges would be effective at teaching. If you’re not a creative or innovative person by the time you reach college, can anything they can teach you there really do anything about that? This is evidence in favor of the signaling theory.

Also notable is the absence of any desire of employers for specific subject matter knowledge. This does not bode well for non-signaling theories, since so much of what colleges currently do is teach subject matter.

The results of this survey are slightly suggestive of signaling theories, but they don’t appear completely damning or one sided. In either case, what employers want colleges to teach is probably the best battleground for these theories of education to compete. I would be interested to see how defenders and critics of the signaling theory of education interpret these results.

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