Study on Education Policy and Social Welfare Based on Signaling Model

The universality and quality of education are important to social development. In the explosive development of information technology, our educational ideas and policies should also be changed. Also, our social economy is deeply influenced by the information revolution, and the problems to be considered are more complicated than in the past. Under the background of Information Economics, Education is not only a signal that can affect the company's decisions and development, but also a way to improve employee productivity to some extent. In this paper, a signaling model was built with two parts, employing educated workers and uneducated workers. Based on the analysis on the data of education and its impact on social efficiency, it explains the ideal logic and practical consequences between several government policies, such as encouraging more universal and equal education instead of higher levels of education, and the possibility of use Education resolves cultural conflicts between classes. It must be admitted that for different types of people, there is a trade-off between equality and efficiency. Under the assumption of the signaling model in this paper, education is a signaling problem, and its possible consequences or solutions can be proved mathematically and economically in the model. After modeling and analysis, we can get some comparative data related to educational variables. The problem of excessive semaphore can be solved by changing other factors of education to make its positive externality overcome its negative externality, as shown in numerical examples and graphs. The conclusions are as follows: under different education levels, signals will increase social welfare, but too many signals will hinder society from optimizing its welfare. The higher the level of education, the fewer people are educated, but the stronger the ability. In order to improve social efficiency and welfare, the government can intervene by treating education more as an enhancement of human capital rather than a signal, and improve the quality of education provided rather than the quantity. In addition, from a utilitarian point of view, professional education is more useful for improving social welfare.