When employers sort employment applications into high-ability and low-ability people based on the attainment of a university degree (irrespective of major),they are providing evidence in support of which of the following
A)the human-capital theory of education
B)the signalling theory of education
C)the principle that education enhances marginal productivity
D)the neoclassical principle that most business owners are more interested in discriminating against a particular group than in maximizing profits

Question

Quizplus · Accepted Answer

Employers sorting applicants based solely on the attainment of a university degree reflects the signalling theory of education. This theory suggests that education does not necessarily act as a skill-enhancing investment, but rather it signals the individual's pre-existing abilities and qualities (such as intelligence, determination, and work ethic) to potential employers. Employers may use education as a signal that the applicant possesses these desirable traits, making them a more desirable hire.

When Employers Sort Employment Applications into High-Ability and Low-Ability People