A labor contract in which a worker is paid less than he or she is worth when young and more than he or she is worth when old is called a(n) ____ contract.

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Quizplus · Accepted Answer

This type of contract is called a deferred-payment or deferred-compensation contract, as the worker receives lower wages in the present and higher wages in the future. This is often used as a way for employers to incentivize workers to stay with the company for a longer period of time.

A Labor Contract in Which a Worker Is Paid Less