Which of the following statements is correct?
A)Compensating wage differentials reflect different skills of workers.
B)Discrimination by employers affects the marginal productivity of workers.
C)The signaling theory of education suggests that schooling does not affect worker productivity.
D)The superstar phenomenon explains why more talented entertainers earn more than less talented entertainers.

Question

Quizplus · Accepted Answer

The signaling theory of education suggests that education serves as a signal to employers of certain attributes like intelligence or perseverance, rather than directly increasing productivity.

Which of the Following Statements Is Correct