Michael Spence posits that high-ability workers are able to choose just the right amount of education to signal that they are high-ability because:
A) high-ability workers find it less costly to acquire education than low-ability workers.
B) high-ability workers have greater productivity gains from education than low-ability workers.
C) employers value education in and of itself.
D) high-ability workers enjoy school more than low-ability workers.
E) low-ability workers value leisure more than high-ability workers.

Question

Quizplus · Accepted Answer

High-ability workers find it less costly to acquire education than low-ability workers, which allows them to use education as a signal of their higher ability. This is because they can achieve educational milestones with less effort or resources compared to their low-ability counterparts.

Michael Spence Posits That High-Ability Workers Are Able to Choose