The Influence Of Asymmetry On Students

To begin with, information asymmetry inhibits students from making informed choices. In a study on the decision-making process of year-13 students (Ertl, Carasso, & Holmes, 2013) demonstrates that information deficit may influence students’ choices. Specifically, students may know little about the “complex educational and financial matters in a quasi-market that was evolving around them” (2013), this ignorance may result in an overly optimistic expectation of benefits and costs， especially with the government’s propaganda of ‘graduate premium’. Furthermore, signaling theory to a certain extent redresses the problems caused by asymmetric information during job interviews. Since employers exploit education as a signal to identify capable applicants, …show more content…
Confronted with less close connection with other European countries, Britain may consider upgrade their structure of productivity. Conventionally, transformation requires new skills. When recruiting, employers are prone to select the top competitors in the job queue, as they present more abilities which imply better adaptability for transformation. To climb towards the climax, degree is one effective method. Thus, graduate can easily transcend their non-graduate counterparts. Moreover, as Marx (1972) noticed, a small amount of sophisticated labour equates to a large multitude of simple one. Therefore, to optimize costs in the present economic downturn, employers may favor graduates to non-graduates, albeit ‘graduatisation’ of occupation. In brief, job opportunities for graduates may decline for overall depression; conversely, vacancy for degree-holders may progress

Supply and demand imbalance between graduate applicants and graduate positions generally explains the over-qualification and under-utilization simultaneously happening to 50% UK graduates (Holmes & Mayhew, 2015) in the labour market. Following is the detailed