Time out of the labor force reduces current earnings as well as future earnings.This suggests that

Question

Quizplus · Accepted Answer

The statement implies that time out of the labor force reduces both current and future earnings, indicating that on-the-job experience, which is a form of human capital, is valuable to employers and workers. This suggests that general training does not necessarily exist and that firms may invest in specific job training. The statement does not imply that workers never willingly exit the labor force when young, nor does it suggest that productivity is unrelated to job experience. Therefore, the answer is B.

Time Out of the Labor Force Reduces Current Earnings as Well