[sopooneo]

> Some see a university education as an example of this: it costs cleverer and more conscientious types less to get a degree than stupider and lazier ones, allowing employers to distinguish between the two.

Wait, how? If two people both have a degree, how does that help distinguish who is stupid?

[macleginn]

I think they mean it probabilistically: given the cost, a "stupid and lazy" person is less likely to get a degree, so employers can hope that the percentage of such people among university grads will be lower than in the general population.

[huitzitziltzin]

Start with “the market for lemons” by George akerlof.

https://en.m.wikipedia.org/wiki/The_Market_for_Lemons

The case you are confused by is a version of the model there. The relevant material is covered in any intermediate-to-advanced microeconomics textbook.

[porkbrain]

on average the "cleverer" ones get the degrees easier, hence there's a higher chance to pick a "cleverer" candidate if selecting by this criterion than when selecting at random