The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called

Educational Attainment

A measure of the highest level of education completed by an individual or population, often used as an indicator of socioeconomic status.

High-Ability Workers

Refers to employees who possess significant skills, intelligence, or talents that contribute to higher productivity and performance in the workplace.

Low-Ability Workers

Individuals with limited skills or qualifications, often facing difficulties in competitive job markets.