"There is also one particularly needed elaboration of the model (which is not to say that it doesn't cry out for elaboration in many other directions). This is the relation between college filtering and on-the-job filtering. Once an employee has been hired, the employer can gradually draw on more directly obtained information to determine his productivity. However, this filtering may be costly. To the extent that the employer does filter and does so accurately, the Value of the college filter is reduced. The employer pays the average product of a group with given educational achievement only during the period before his own filter has become effective. Conversely, however, an increase in the college population will mean (and has meant) a depreciation in the quality of non-college students (this is not necessarily the same as a decrease in the quality of college students)."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Academics from the United StatesPeople from New York CityMathematicians from the United StatesEconomists from the United StatesNobel laureates in Economics
Original Language: English
Available Languages (1)
Sources
"Higher Education as a Filter", Journal of Public Economics (1973)
https://en.wikiquote.org/wiki/Kenneth_Arrow
Revision History
No revisions have been submitted for this quote.
Categories
Kenneth Arrow
Kenneth Joseph Arrow (August 23, 1921 – February 21, 2017) was an American economist, who was Professor Emeritus of Economics in Stanford, and joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972.
151 quotes on TrueQuotesView all quotes by Kenneth Arrow →
Related Quotes
"There is no need to enlarge upon the importance of a realistic theory explaining how individuals choose among alterna…"
"Among economic phenomena which have in some way been tied up with the existence of uncertainty, three classes may be …"
"The businessman may be compared with two other types of individuals who are essentially concerned with behavior under…"
"Traditional welfare economics shows that there are certain of these combinations that will be preferred by all the vo…"
"In a capitalist democracy there are essentially two methods by which social choices can be made: voting, typically us…"
"Ever since I encountered Hicks’s Value and Capital while I was still a graduate student, I had the aim of completing …"
"L. Walras first formulated the state of the economic system at any point of time as the solution of a system of simul…"
"Perhaps as important is the relation between the existence of solutions to a competitive equilibrium and the problems…"
"The government may be regarded as a decision-making entity. Among the decisions it makes are the formation of economi…"
"The terms of trade with the outside world should not be regarded as freely given to the firm. In a world with a large…"