Question

Screening theory is an alternative theory which states that Question 3 options: 1) People have little...

Screening theory is an alternative theory which states that Question 3 options:

1) People have little incentive to achieve higher education due to low wages

2) People get a higher education to signal that they are instrinsically more productive workers but that education alone adds nothing to the productivity of workers

3) People get a higher education in order to increase their utility

4) People get a higher education in order to receive a salary increase

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Answer #1

Ans) Screening theory is opposite of human capital theory. It states that education has nothing to with the productivity of labour. It is merely used by the employers as a signalling device to select more skilled workers.

Option b.

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