Question

labor economics.

how does human capital theory and labor economics explore the relationship between schooling and earnings?

Answer 1

Human capital Theory is an extension of Adam Smith's theory. According to the study the cost we put in learning a job hold a lot of importance in the net advantage and profit that we earn later. According to it when we learn about the job our knowledge enhances and we become more efficient in our job. That extra efficiency and knowledge helps us in gaining more profit.

Labour economics

Skilled labours are learned labours. Unskilled labour never had any schooling. The unskilled labours lack that capacity which is necessary for one to innovate and excel and hence are paid less.  

Therefore schooling and earning have an undeniably important relation.