Which theory would support the idea that education does NOT enhance productivity and that raising all workers' educational levels would NOT affect wages
A)signalling theory
B)human-capital theory
C)physical-capital theory
D)efficient-market hypothesis

Question

Quizplus · Accepted Answer

The signalling theory suggests that education functions as a signal to employers about a worker's ability rather than as a source of enhanced productivity. According to this theory, employers may use educational level as a way of identifying the best and most productive job candidates. However, this theory suggests that simply raising all workers' educational levels would not necessarily lead to higher wages, because it is the relative educational level that matters rather than the absolute level. Therefore, option A would support the idea that education does not necessarily enhance productivity and that raising all workers' educational levels would not affect wages.

Which Theory Would Support the Idea That Education Does NOT