Because Workers in Internal Labor Markets Are Promoted on the Basis

Because workers in internal labor markets are promoted on the basis of seniority:

A) such markets are allocatively inefficient because seniority takes precedence over ability
B) dynamic efficiency is enhanced by removing a disincentive for older workers to pass along skills to younger workers
C) static efficiency is enhanced by allocating the most able workers to each job
D) some other scheme must be introduced,such as tournament pay,to improve efficiency in such markets

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free