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?

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter26: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 13CQ
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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?

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