The wage-schooling locus fails to allow researchers to test the theory that people choose education levels to maximize lifetime earnings because of self-selection. In this context, self-selection refers to
A. people letting their ability dictate, in part, how much education they complete.
B. firms paying more educated workers a higher wage than they pay less educated workers.
C. college graduates selecting their occupation later in life.
D. firms hiring workers of varying ability.
E. college students completing high-wage majors.
Answer: A
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