Industry Choice as Ability Signal

Employer learning speeds vary by industry, so a worker’s choice of industry itself communicates ability: high‑ability workers gravitate toward sectors where employers can observe performance quickly, while slower‑learning industries attract workers for whom degrees remain a stronger signal. This sorting both amplifies wage and career disparities and helps explain why many ultra‑wealthy people lack advanced degrees—they chose sectors where on‑the‑job performance outpaces credential signals. — If industry selection functions as a public signal of talent, credential‑based policies (admissions, licensing, tax/talent programs) and debates about the value of higher degrees need to account for employer learning heterogeneity rather than treating education as a uniform signal.