explain the assumptions of signalling model
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The signalling theory as developed by Spence (1973) starts from the following assumptions: (i) individuals differ in productivity and productivity is fully person-specific and not affected by schooling; (ii) more schooling entails more costs, and schooling costs are lower for the more productive (e.g., they may need to
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The signalling theory as developed by Spence (1973) starts from the following assumptions: (i) individuals differ in productivity and productivity is fully person-specific and not affected by schooling; (ii) more schooling entails more costs, and schooling costs are lower for the more productive (e.g., they may need to
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