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e. dearer) establishments. Fairly, the cost Spence is referring to is The chance Expense. This is certainly a mix of 'expenditures', financial and otherwise, including psychological, time, exertion and so on. Of important relevance to the value of the signal would be the differing Price framework amongst "good" and "poor" personnel. The price of acquiring identical qualifications is strictly lower for your "superior" staff than it is actually with the "terrible" staff.
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Spence assumes that for businesses, there is not any real way to tell ahead of time which workers will likely be of The great or bad type.
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