Suppose an employer sorts employment applicants into high-ability and low-ability groups, based on whether they have a university degree. If the employer considers that the major of an applicant is irrelevant, then the employer is likely to be:

Question

Quizplus · Accepted Answer

This is an example of signalling theory of education where the employer is using the possession of university degree as a signal of ability and productivity, rather than using it as a direct measure of skills or knowledge gained through education. The major of the applicant is considered irrelevant, which implies that the possession of a degree is seen as a general indicator of ability, rather than a specific indicator of knowledge in a particular field.

Suppose an Employer Sorts Employment Applicants into High-Ability and Low-Ability