What is a perfectly separating signaling equilibrium

Reference no: EM132181683

Question: 1. Show how education can signal the worker's innate ability in the labor market. What is a pooled equilibrium? What is a perfectly separating signaling equilibrium?

2. How can we differentiate between the hypothesis that education increases productivity and the hypothesis that education is a signal for the worker's innate ability?

3. Discuss the difference between general training and specific training. Who pays for and collects the returns from each type of training?

Reference no: EM132181683

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