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If the signaling theory of education is correct;

A. workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
B. additional years of formal schooling do not increase a worker’s productivity.
C. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.
D. men are more likely to earn more than women because men are more likely to have graduated from college.

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Answer:

C. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.

Explanation:

The signalling theory in education tells us that employees send "signals" to their employees regarding their education. In other words, employers are willing to pay higher wages to employees with additional years of formal schooling.

This means these qualified workers have their wage primarily defined by their education level, which does not always reflect their true skill-set (the output of ability and effort).

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