Why would the minimum wage have an adverse impact

Reference no: EM132181664

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?

Reference no: EM132181664

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