Question

In general people with more education earn higher salaries. Economists have offered two explanations of this relationship. The human capital argument says that high schools and colleges teach people valuable​ skills, and employers are willing to pay higher salaries to attract people with those skills. The signaling argument says that college graduates earn more because a college degree is a signal to employers that a job applicant is​ diligent, intelligent, and persevering.1. The ____ implies that a college student who drops out of school one month before graduation should earn much less than a student who graduates.2. The ____ implies that a college student who drops out of school one month before graduation should earn almost the same as a student who graduates.Choices:(a) signaling argument(b)causation argument(c)human capital argument(d)correlation argument

Answer 1

Answer:

The correct answers are signaling argument; human capital argument.

Explanation:

Salary levels are closely related to educational levels. The increase in workers' wages, also called private profitability of education, comes from productivity. This is acquired through the education system, learning in the workplace or ‘learning by doing’ and lifelong learning or ‘lifelong learning’.

Salary differences increase with the professional career. At age 55, the age at which an average worker reaches his highest level of income, an employee with a bachelor's degree receives a salary that is 2.3 times that of one with compulsory secondary education, while a graduate and a graduate in (Vocational Training) higher multiply their salary by 1.8 and 1.5, respectively.