Why the Education System Is a Waste of Time and Money
Hey Caplan, guess what?
During labor shortages, employers are given greater incentive to go through the effort of finding the diamonds in the rough rather than increasing salaries; immigration actually fuels this sheepskin effect by making the degree premium more affordable for employers. https://apnews.com/article/cb2739df66fea98e4e017f25e114dfb6
The effect of immigration is to make wages cheap enough that employers would rather save on testing materials and rely more on university degrees rather than raising wages or finding the diamonds in the rough.