Which theory would suggest that attending school does not improve productivity,but that high-ability people are more likely to stay in school
A)physical-capital theory
B)human-capital theory
C)signalling theory
D)neoclassical theory

Question

Quizplus · Accepted Answer

Signalling theory suggests that education serves as a signal to employers of an individual's ability and potential to perform well in the workforce, rather than solely improving productivity. This theory would suggest that high-ability individuals are more likely to stay in school, but attending school itself may not necessarily improve their productivity.

Which Theory Would Suggest That Attending School Does Not Improve