A signaling theory of education suggests that
A)people who attend college are more likely to capture a "beauty premium."
B)education is a signal of social status.
C)education does not necessarily increase productivity.
D)education will sever the link between innate ability and compensation.

Question

Quizplus · Accepted Answer

Signaling theory suggests that education serves as a signal to employers of certain qualities like intelligence or diligence, rather than necessarily increasing a person's productivity.

A Signaling Theory of Education Suggests That