Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had no effect on the wages of its workers, one might consider this as evidence in support of

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If the effort to increase educational level of people has no effect on wages, it suggests that education is not creating any new skills or abilities that could lead to higher productivity or increased output, thus not supporting the human-capital view of education. However, if employers are still willing to hire workers with higher levels of education, it suggests that education is serving as a signal of their ability and work ethic, supporting the signaling view of education.

Suppose That the Country of Libraria Made a Concerted Effort