A person fresh out of college dosen't have much experience and is not the most desirable person for most Co's to hire. However, having a college/university degree and experience in a particular field makes you a VERY desireable candidate for the job i which you are applying for. College is not always just about gaining knowledge, it's also about learning skills pertaining to logic, this is what most companies are looking for anyways, people who are very detailed, experienced have covered a very diverse, broad range of materials in their field.
Having completed my degree in Geology and now working on my Chemistry degree i would say school makes a big difference in the job market. However, anyone can learn what i've learned but not everyone can think logically about what they have learned. So i guess i don't believe a degree proves how intelligent a person is one way or the other, but i do have more respect for someone with a degree than someone without a degree. They have proven they want to be successful and are willing to sacrifice to achieve their dreams and asperations ...thus they obligate themselves to their jobs. Someone without a degree usually figures they don't have a need to be successful thus they can find a job anywhere, so most companies don't often care for people without degrees. However, i don't have much respect for someone with an art appreciation or a degree in culinary arts, degrees like this only shows how lazy and unmotivated they are.
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