When a firm pays higher wages, it is likely that doing so will
A) increase turnover.
B) lower the firm's ability to attract high-skill workers.
C) encourage workers to stay on the job for a long time.
D) decrease worker utility.
E) decrease the quality of the potential worker pool.

Question

Quizplus · Accepted Answer

Paying higher wages is often used as a strategy to reduce turnover by encouraging workers to stay with the firm longer, as it increases their job satisfaction and loyalty.

When a Firm Pays Higher Wages, It Is Likely That