What does the signaling theory of education primarily suggest?

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It transforms every employee into an outstanding performer.It enhances workers' skills and leads to higher salaries.It enables employers to distinguish between high-ability and low-ability employees.It narrows the salary differences between skilled and unskilled workers.

Explanation

According to the signaling theory, education mainly serves as a tool for employers to identify and separate employees based on their innate abilities, rather than directly increasing their productivity or reducing wage disparities.