Which theory would support the idea that education does not enhance productivity and therefore raising all workers' educational levels would not affect wages?
A)signaling theory
B)human-capital theory
C)physical-capital theory
D)the efficient-market hypothesis

Question

Quizplus · Accepted Answer

Signaling theory suggests that education does not actually increase productivity, but rather serves as a signal to employers of a worker's innate abilities and skills. Therefore, raising all workers' educational levels would not necessarily lead to increased wages, as it is not the education itself that is leading to higher productivity.

Which Theory Would Support the Idea That Education Does Not