In the Spence education signaling model,what is the social value of education?
A)Employees improve their ability to perform on the job.
B)Employers can use education as a screen to match talented employees with high-skill jobs.
C)Employers can save the costs of on-the-job training,which is less efficient than a general education.
D)It allows low-ability employees to apply for high-salary jobs.

Question

Quizplus · Accepted Answer

According to the Spence education signaling model, education serves as a signal to employers of an individual's abilities and motivation. Employers can then use education as a screening device to match talented employees with high-skill jobs. Thus, the social value of education is in providing an efficient mechanism for job matching and improving labor market efficiency.

In the Spence Education Signaling Model,what Is the Social Value