According to conventional human capital theory, college graduates earn more than high school graduates because

Question

Quizplus · Accepted Answer

All of the above are correct. College graduates may demand a higher salary as they have invested significant financial resources in their education, and therefore, they need to earn enough money to recover the cost. Additionally, human capital theory assumes that higher education increases individuals' productivity in the labor market, making them more competitive and valuable. Employers are willing to pay higher wages to attract and retain skilled employees as a result. Finally, the demand for workers in high-skilled, high-paying professions outstrips supply, so employers must offer higher wages to fill those positions.

According to Conventional Human Capital Theory, College Graduates Earn More