In order for education to be effective as a signal of worker productivity it must be
A) easy for everyone to get a college degree.
B) costly for less productive workers to imitate.
C) that the employee has taken classes in economics.
D) none of the above make education an effective signal.

Question

Quizplus · Accepted Answer

Education serves as an effective signal of worker productivity when it is costly for less productive workers to imitate. This means that employers are more likely to pay higher wages to workers with higher levels of education, as it signals that they are more productive and valuable to the company. If education is easy for everyone to obtain, then it loses its signaling power as it no longer distinguishes between more and less productive workers. Taking classes in economics is also not a necessary condition for education to be an effective signal.

In Order for Education to Be Effective as a Signal