Under the 'signalling view' of education, obtaining a university degree communicates valuable information to employers because:
A)it is easier for high-ability people to get a degree than low ability people, so more high-ability people get degrees
B)the high cost of education signals the employee's desire and commitment to an industry
C)the high level of work needed to obtain a university education is a signal of effort
D)the skills and knowledge leant at university increases an employee's marginal product

Question

Quizplus · Accepted Answer

The signalling view suggests that obtaining a degree is easier for high-ability individuals, thus they are more likely to pursue and complete higher education, signaling their ability to employers.

Under the 'Signalling View' of Education, Obtaining a University Degree