If the signaling theory of education is correct,
A)workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
B)additional years of formal schooling do not increase a worker's productivity.
C)workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.
D)men are more likely to earn more than women because men are more likely to have graduated from college.

Question

Quizplus · Accepted Answer

The signaling theory of education suggests that education serves as a signal to employers about a worker's potential productivity, rather than necessarily increasing the worker's actual skills or productivity. This means that additional years of formal schooling signal to employers that a worker may be more capable or reliable, even if those years do not directly increase the worker's productivity.

If the Signaling Theory of Education Is Correct