Two otherwise identical workers enter the labor force at the same time in the sa

Question

Two otherwise identical workers enter the labor force at the same time in the same city. One takes a job where all required tasks can be completed with only the skills the individual had when entering the market. The other takes a job that requires 3 months of training in tasks unique to the particular job. (a) (10 points) Which worker earns more initially? Explain. (b) (10 points) Which worker's wage grows faster? Explain. (c) (5 points) Which worker is more likely to stay in the job longer? Explain d) (5 points) Based on your responses, explain why it benefits firms to use proprietary technologies that are only useful for the specific firm.

Explanation / Answer

A)   Initially worker will lower skill will earn more( as he need no training and can work with the skills he already has ) . Firm will pay lower wage to worker to whom it is imparting training because there is training cost which firm has to bear .

B) Worer which got training for the job will see faster wage growth. This is because he has special skills pfor the job on hand and thus it would demand higher wages as time passes.

C) Worker with specialized training will stay in job for longer time. This is because once firm has provided training to citizen it don't want to I invest again in training so it will adhere to workers demand for higher wages. Also one will less skilks can stay for small time period only as it won't be productive for firm to employ him.

D) Such technologies would prevent firms from taking advantage of one another . This means that if firm have propriety technology then skills imparted by one firm is of no use to other firm and hence other firm cannot hire worker trained by other firm .

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.