Q: True/False or Uncertain

Although the schooling and signalling models of human capital investments have different underlying assumptions regarding the productivity enhancing role of education, they both imply a positive correlation between earnings and years of education.

Hence, a policy making decision based on these two models of educational investments would support extra funding to educational infrastructure through governmental subsidy programs in order to improve social welfare and reduce poverty particularly in less developed or underdeveloped countries.

Please provide detail explanation as to why your decision is correct