Which of the following statements is not correct?
A)If the signaling theory of education is correct, additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education.
B)The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive.
C)Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits.
D)The theory of compensating wage differentials reflects the different skills, abilities, and productivity of workers.

Question

Quizplus · Accepted Answer

The theory of compensating wage differentials actually reflects differences in job characteristics, such as risk or desirability, rather than differences in worker skills, abilities, or productivity.

Which of the Following Statements Is Not Correct