Alex is practicing her college interview for Princeton in the mirror when Haley comes in to style her hair. Princeton is an Ivy League school that is very prestigious and gets a lot of applications. Princeton does not know which applicants it should let in so it screens them. Screening is an action taken by an uninformed party in a situation characterized by adverse selection. There are many things that colleges do to screen applicants. They require high school transcripts, a certain GPA, test scores and they conduct an interview. When someone is interviewed, it’s an opportunity for them to send a signal. A signal is an action taken by an informed party in a situation characterized by adverse selection. Alex wants to signal to Princeton that she’s a good candidate for admission into the university. Haley shares her thoughts about the message that Alex is actually sending.
See more: adverse selection, asymmetric information, college, human capital, human capital investments, imperfect information, interviewing, signaling, signals
Haley auditions for work on a cruise ship. She didn’t get the job but why? Is it because she’s not in the right sorority or was it because she wasn’t as skilled as the others auditioning. If she was equally skilled and not selected because of some other characteristics (like not being in a sorority) then she would have been discriminated against.
See more: discrimination, human capital, interviewing, skills, talent
Andy is Jay and Gloria’s new “manny” (a male nanny). He’s also been hanging out a lot with Haley, which makes Phil and Claire suspect a budding romance. In this scene, Andy approaches Phil because he wants to becoming a real estate agent. He knows that he’s going to need to acquire more human capital before he’s able to do that so he asks to work as Phil’s new assistant. In this scene, we watch Andy interview for this job. We also find out why Haley and Andy have been spending so much time together – they are practicing interview skills. Interviewing is like everything else and requires a special set of skills that we can get by practice. The better someone is at interviewing, the shorter the amount of time is that s/he will be among the frictionally unemployed (unemployment that results because it takes time to match the right worker to the right job).
See more: frictional unemployment, interviewing, labor market, unemployment
It’s Halloween and Americans love to wear costumes. Sometimes, they wear costumes to work. This scene underscores the importance of professional dress. The way that we dress is a signal to the world about who we are. Is the stenographer sending the right signal to the court by wearing a spider costume? Do you suppose she would have gotten the job if she dressed like this for the interview? Her choice of attire also casts a negative externality in court as Mitchell and the jury aren’t able to concentrate as well. These social costs are likely outweighing her private benefits.
See more: externalities, interviewing, labor market, negative externalities, private benefits, signaling, social costs
Haley is interviewing for a job and it isn’t going well. The labor market is often characterized by adverse selection – there are more candidates who are not suited for a particular job than who are well suited and it’s tough to tell them apart. Screening is an action taken by an interviewer to determine whether or not a candidate will be a good fit. Signaling is action taken by the candidate in order to demonstrate that s/he is a good fit. What examples of signaling and screening are in this scene?
See more: adverse selection, interviewing, labor, product differentiation, screening, signaling, signals