Tom, the manager and owner of a small company, believes in the signaling theory of education, not the human capital theory. As such, we would expect Tom not to offer which of the following company benefits?
A)employer-matching 401k retirement plan contributions
B)tuition reimbursement for workers who take college classes
C)on-site day care
D)health insurance

Question

Quizplus · Accepted Answer

The signaling theory of education suggests that education primarily signals to employers that an individual is intelligent, diligent, and able to learn, rather than providing specific knowledge and skills. As such, Tom may not see the value in offering tuition reimbursement for college classes, as he may not believe that the specific knowledge and skills gained from college classes are as important as the signal of having a degree. The other benefits listed (employer-matching 401k retirement plan contributions, on-site day care, and health insurance) are not directly related to education and are likely still seen as valuable by Tom.

Tom, the Manager and Owner of a Small Company, Believes