Final answer:
Employers often rely on resumes, degrees, awards, and references as sorting devices to choose employees based on asymmetric information in the labor market.
Step-by-step explanation:
Employers often rely on resumes, degrees, awards, and references as sorting devices to choose employees because of the presence of asymmetric information in the labor market. Asymmetric information refers to the fact that employers cannot observe many key attributes of potential employees until after they are hired. By using resumes, degrees, awards, and references, employers can make inferences about a candidate's hard work, perseverance, ability, energy level, and work ethic. These signals help employers screen for certain attributes and make more informed hiring decisions.