If the signaling theory of education is correct,
A)education increases productivity and educated workers are paid more.
B)education increases productivity but educated workers are not paid more.
C)education does not increase productivity but educated workers earn more.
D)education does not increase productivity and educated workers do not earn more

Question

Quizplus · Accepted Answer

The signaling theory of education suggests that education does not necessarily increase productivity but serves as a signal to employers of certain desirable traits, leading to higher earnings for educated workers.

If the Signaling Theory of Education Is Correct