Pay policies indicate the kinds of behaviour an employer seeks. This is a prediction of ________ labour demand theory.
A)reservation wage
B)signalling
C)compensating differentials
D)efficiency wage
E)human capital

Question

Quizplus · Accepted Answer

Signalling theory suggests that pay policies can signal to employees the types of behaviors and skills that are valued by the employer, influencing the labor market by attracting individuals who possess or are willing to develop those behaviors and skills.

Pay Policies Indicate the Kinds of Behaviour an Employer Seeks