What Problem Does Turnover Create for Firm Specific Training

question 30

Multiple Choice

What problem does turnover create for firm specific training?

• A) Human capital is destroyed if the worker quits the firm.
• B) The worker pays more for human capital than is efficient.
• C) The workers are underpaid to correct a market inefficiency.
• D) Firms underinvest in human capital.
• E) Turnover does not cause a problem because of contracts.

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Definitions:

Structural Unemployment

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Long Spells Of Unemployment

Extended periods in which an individual is actively seeking but unable to find employment.

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data related to employment, labor market activity, working conditions, and price changes.

Household Survey

A survey method involving the collection of data through interviews or questionnaires from a sample of households, typically used to gather information on demographics, employment, and economic conditions.