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The Wage-Schooling Locus Fails to Allow Researchers to Test the Theory

Question 21

Multiple Choice

The wage-schooling locus fails to allow researchers to test the theory that people choose education levels to maximize lifetime earnings because of self-selection. In this context, self-selection refers to


A) firms paying more educated workers a higher wage than they pay less educated workers.
B) college graduates selecting their occupation later in life.
C) people letting their ability dictate, in part, how much education they complete.
D) college students completing high-wage majors.
E) firms hiring workers of varying ability.

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