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.

Question

Quizplus · Accepted Answer

Workers with longer tenure at their current firm have likely invested more in firm-specific training, which increases their productivity and earnings over time, leading to a steeper age-earnings profile.

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