The thing which Professor Tabarrok most likely means when he says that education is mostly about signaling is that he thinks that the outside world needs to see an underlying level of talent.
This refers to the contract theory that believes that a person can confidently convey some vital information about himself to someone else.
Hence, with this definition in mind, we can understand that if a person believes that education is mostly about signaling, then he usually means that there is the showing of talent and knowledge to the outside world.
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