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What does signaling theory say about the value of education

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1. College education as a signal clashes with human capital theory, which says that educated workers earn more because they were made more productive by their education. What does signaling theory say about the value of education? In other words, according to signaling, why are educated workers paid more?

2. Why has it been difficult to determine with data whether human capital or sig- naling theory is right about college education?

Reference no: EM13870893

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