I am willing to bet that the formally recognized aspect of human knowledge and education is about one percent. For instance the high school diplomas, university degrees etc etc etc which are all formal recognition of that we have been tested on an area of knowledge, make up probably one percent of our actual knowledge. If not less.
Yet the formal recognition of knowledge has a massive effect on an individuals future. People with degrees simply earn more than people who don't.
But people have hobbies, interests, moonlighting, tasks etc etc. People know subjects and areas of human achievement in great detail. Often writing about it, meeting others on those issues, producing physical output, passing on those skills etc etc. Yet none of this knowledge is formalised in anyway.
It is still valid knowledge.
Much of this knowledge is applicable to the labor market too, yet because it is going unrecognised formally, that knowledge, skills etc is being lost to the labor market.
So is the very small area of education that employers are willing to recognise as valid knowledge forcing inefficiencies in the labor market and economy?
So when does education and knowledge become recognisable? When is it recognised socially? Culturally? Economically? By the labor market?
What level of testing or output is necessary for others to recognise this existing knowledge, or people who are learning in area?
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