Economist Michael Spence Uses a Concept Called the "Signaling Hypothesis

question 212

Essay

Economist Michael Spence uses a concept called the "signaling hypothesis" to argue that college graduates don't earn high incomes because the skills they learned while in college serve to increase their productivity. Explain the signaling hypothesis. Is there evidence that the signaling hypothesis is not valid?

---

Definitions:

Environmental Progressive

An individual or policy focusing on advancing environmental protection and sustainable practices.

Strategic Intent

The ambitious and long-term vision that guides an organization's strategy, setting the direction for its efforts.

File For Bankruptcy

The legal process by which individuals or businesses declare their inability to pay their debts and seek relief from some or all of them under the jurisdiction of a bankruptcy court.

Corporate Strategy

The overarching strategy of a company, which focuses on the organization’s scope, including its markets and industries, to achieve long-term profitability and growth.