Question

Discuss whether the human capital and signaling models have different implications for each of the following education policies:

A. Providing financial aid to students for college.
B. Introducing a test that high school students could take to provide reliable measures of task commitment and capacity to work effectively in teams.
C. Increasing the age at which students can drop out of high school from 16 to 17.

Answer 1

A. Providing financial aid to the students will have signaling effect for students and they will study with more concentration. The financial aid helps students to focus on their studies rather than financial problems.

Step-by-step explanation:

B. Test will enable to analyze the capability of students and identify whether the students has interest in certain field of education. The students who score high in the test are selected to study in the college.

C. Increase in age will increase the human capital. More students will be able to join the college. Some students might have lapsed a year due to an injury or illness and they are now been able to join the college despite of their age.