Problem
1. Show how education can signal the worker's innate ability in the labor market. What is a pooled equilibrium? What is a perfectly separating signaling equilibrium?
2. 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?
3. Discuss the difference between general training and specific training. Who pays for and collects the returns from each type of training?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.