Hi, I am Oppenheim. Did you know that you send signals? Signaling theory in evolutionary biology says you do, so do I!
“We, the companies, use commercials as a way to signal consumer’s social status + XYZ?”
Signaling in evolutionary biology refers to the act of conveying information about one’s traits or qualifications to an intended recipient, X, to influence their perception or decision.
This is the same reason why Supreme can sell literal bricks as luxury items which serves as a signal of wealth and status, conveying the message, “I can afford to buy useless things at ridiculous prices.” Similarly, peacocks flaunt their extravagant tails and loud calls, despite these traits making them easier targets for predators. In essence, they are signaling to females, “I trust my genes and agility so much that no predator can catch me.”
Signaling theory explains even further; some theorists argue that the greatest value of education lies not in the specific knowledge we gain, but in the signals we send to potential employers. Graduating from top schools confirms that you are:
- Smart
- Hardworking
- Responsible
These signals reassure employers of your capabilities and potential, often outweighing the actual content of what you learned in school.
In contrast, one might argue that education increases intelligence or provides valuable knowledge. While this is largely true for certain fields, such as medical or technical schools, the role of signaling cannot be ignored. Gaining admission to and completing medical school, for example, is itself a strong signal of intelligence and work ethic. Moreover, there is evidence suggesting that we tend to forget most of what we learn in school unless we actively use it, and that formal education does not necessarily improve intelligence.
I remember some articles I read a couple of years ago about how education affects intelligence. The conclusion was education creates a ’cosmetic’ IQ difference on the test, just like the intense courses some parents give to their children. Not improving the actual general intelligence, the g-factor.
Think about how much you remember from a random course you completed in school. Take geography, for example—I bet most of us wouldn’t even score 20% if we had to retake a geography exam right now. This highlights how school is often more about short-term memorization for exams rather than long-term retention of useful knowledge.
Another way to understand how education is largely about signaling is by examining the economic value of diplomas. In economic literature, this phenomenon is known as thesheepskin effect, named after the historical practice of printing diplomas on sheepskin. The sheepskin effect predicts a significant boost in earnings that comes specifically from obtaining a credential, rather than just completing additional years of education. Bryan Caplan states:
“Once you control for degrees, every year of education raises earnings not by 11.3%, but by a mere 2.4%. Every degree, in contrast, boosts earnings by a full 25.6%”
Notice the fact that education gives signals about students also points to the classic chicken-and-egg paradox at educational institutions: Are they better because they have better students, or do they have better students because they are better institutions? The answer is both.
Signaling is a big deal because stereotypes create efficient shortcuts for categorizing people. For employers, it’s far easier to filter applicants based on the educational institutions they attended and then assess finer details later, rather than scrutinizing every individual from the start. As an employer, you want someone who is not only intelligent but also good at teamwork—this is why community involvement and extracurricular activities on a CV can make a difference. And hey, that’s just one more reason to join ESN Trabzon!
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