Suppose that mobility costs incurred by workers are low.In this circumstance,the best way to provide incentives for on-the-job training is for
A) employees to bear all of the costs of the investment.
B) employers and employees to share the costs of the investment.
C) employers to force workers to accept a below market wage during the training period.
D) employers to bear all of the costs of the investment.

Question

Quizplus · Accepted Answer

When mobility costs for workers are low, they can easily leave for another job after receiving training. Sharing the costs of training between employers and employees can help ensure that both parties have a vested interest in the training outcome, reducing the risk for employers that workers will leave immediately after being trained, and making it fairer for employees by not burdening them with all the costs.

Suppose That Mobility Costs Incurred by Workers Are Low