Economist Michael Spence uses a concept called the "signaling hypothesis" to argue that college graduates don't earn high incomes because the skills they learned while in college serve to increase their productivity. Explain the signaling hypothesis. Is there evidence that the signaling hypothesis is not valid?

Question

Quizplus · Accepted Answer

The Answer of Economist Michael Spence uses a concept called the "signaling hypothesis" to argue that college graduates don't earn high incomes because the skills they learned while in college serve to increase their productivity. Explain the signaling hypothesis. Is there evidence that the signaling hypothesis is not valid?

Economist Michael Spence Uses a Concept Called the "Signaling Hypothesis