This report is concerned with the relationship between income and schooling. A theoretical model explores the role of schooling as an informational or screening device with an expected profit maximization framework. The issue revolves around the extent to which formal schooling serves to augment worker productivity and, thus, social product, as opposed to conveying information to employers about the probable productive capabilities of prospective workers without, in itself, affecting those capabilities. Empirical tests are formulated to disentangle schooling's productivity augmenting and identification functions. The conclusion drawn is that the apparent use of schooling as a screening device does not appear to stem from a mere identification of productivity types. In fact, the pure productivity augmenting view of the income-schooling relationship appears greatly more tenable. (Author/KSM)