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Why Is It Hypothesized That the Slope of the Age-Earnings

Question 23

Multiple Choice

Why is it hypothesized that the slope of the age-earnings profile is likely steeper for workers who remain with their job (i.e., job stayers) compared to workers who experience job separation (i.e., quits and layoffs) ?


A) Workers with longer tenure at their current firm have invested more in valuable firm-specific training.
B) Workers who experience job turnover, both quits and layoffs, are less productive than job stayers.
C) Workers who experience a job separation experience a jump down in the age-earning profile, which then must be flatter by construction.
D) Workers who experience a job separation must pay for their own job retraining.
E) None of the above explain why the age-earnings profile is steeper for job stayers compared to workers who experience job separation.

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