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Question: 1. It has been argued that the minimum wage prevents workers from investing in on-the-job training and discourages employers from providing specific training to low-income workers. Why would the minimum wage have an adverse impact on human capital accumulation for low-income workers?
2. Jill is planning the timing of her on-the-job training investments over the life cycle. What happens to Jill's OJT investments at every age if:
a. The market-determined rental rate to an efficiency unit falls?
b. Jill's rate of discount increases?
c. The government passes legislation delaying a mandatory retirement age until age 70?
d. Technological progress implies that much of the OJT acquired at any given age becomes obsolete within the next 10 or 20 years?
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