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When the Ehrenberg Company closed, the Smith Company (which provides no training for its employees) offered to hire any of Ehrenberg’s former employees after they completed a lengthy retraining program at a local vocational institution. The Equal Employment Opportunity Commission (EEOC) noticed that Smith would up hiring only younger workers displaced from Ehrenberg and launched an investigation to see if any age discrimination had occurred. During the investigation Smith claimed that it had hired all of the applicants from Ehrenberg that had successfully completed the retraining program regardless of age. From what you know of human capital theory, is Smith’s claim at all credible?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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