After Credentials
2 days ago
- The US has shifted from credential-based to performance-based evaluation over the past 25 years, unlike South Korea where university entrance exams still dominate.
- Credentials originated as an improvement over bribery and family influence, but they are imperfect and lead to cram schools that exploit the system.
- Parents naturally try to use their wealth or power to give their children an advantage, which society must counteract to ensure meritocracy.
- Improving credentials is a long-term solution, but a more effective approach is to reduce the importance of credentials by measuring actual performance.
- Small organizations and startups evaluate performance directly, making credentials less relevant, and this trend is spreading through the economy.
- The rise of market-based pay for young workers, exemplified by yuppies and startups, has driven the shift from seniority to performance-based rewards.
- Encouraging an economy of smaller units and measuring performance is a better way to prevent intergenerational power transmission than relying on credentials alone.