Final answer:
The concept that a college degree signifies potential good employees relates to the social placement function of education, which encourages upward social mobility and aligns with the Davis-Moore thesis on the distribution of societal rewards.
Step-by-step explanation:
The theory that a college degree identifies people who may be good employees is closely associated with a concept in sociology known as social placement. This concept suggests that higher education serves as a mechanism for individuals to obtain more skilled and often better-paid positions in the workforce, thereby acting as a vehicle for upward social mobility.
The Davis-Moore thesis, one example within this concept, asserts that societal rewards (like salary and prestige) are distributed based on the importance and skill level of a job, incentivizing individuals to undergo more education and training for demanding professions, such as those requiring doctorates or medical degrees.
A functional perspective views work and the economy as systems designed for efficiency, where the need for skilled labor justifies social stratification. As highlighted by recent U.S. Census data, individuals with at least a four-year college bachelor's degree earned significantly more than their counterparts with just a high school degree, underscoring the value of a college degree in the labor market.
However, the winner-take-all labor market theory suggests that huge salary disparities are not solely due to educational attainment but also to global demand for 'stars' in various fields.