Question

In the signaling model, what is the relationship between education and productivity?

Answer 1

In the human capital model, education leads to increases in productivity. In the signaling model, high productivity leads to successful completion of higher education. In the end, the results are similar: Those who earn a college degree tend to be more productive workers and earn more money.

Answer 2

In the human capital model, education leads to increases in productivity. In the signaling model, high productivity leads to successful completion of higher education. In the end, the results are similar: Those who earn a college degree tend to be more productive workers and earn more money.