The signaling theory of education suggests that:

Question

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The signaling theory of education suggests that people with college degrees have higher earnings not necessarily because they have acquired more skills or knowledge, but because their degree signals to employers that they possess desirable traits such as intelligence, discipline, and conformity. In other words, education serves as a signal of a person's innate ability to learn and work hard, rather than as a source of specific skills or knowledge.

The Signaling Theory of Education Suggests That