Ch 19 Reflection
1. Signal theory - this is an idea that I have heard of a lot, but have never seen described in these words. Working in a school, I sometimes tell students that it is not that they need to know algebra (they should, but try telling that to a 15 year old), it is that completing high school with good grades shows that they can stick with something and do well at it.
2. Above equilibrium wage - This is another topic that the book has referenced a bit in previous chapters but never named as a concept. It was interesting to see the reasons why a firm would go above market value on wages. Minimum wage has been discussed quite a bit in the text, and old Greg has had plenty to say about unions, but the efficiency wages are a pretty new concept that I had not considered before.
3. Economics of discrimination - As conversation so troubling that it is even uncomfortable to discuss in economic terms. The homework questions couching this idea in terms of height and hair color was interesting.







