Unformatted text preview: Be precise. 2. An employer will never pay for specific training, because they expect employees to be willing to incur the costs of becoming qualified for a job. True, false or uncertain. Explain briefly with reference to a carefully labeled diagram. 3. Consider a firm that employs workers for h* hours per week in a jurisdiction where overtime pay is required for all hours worked in excess of standard hours, h s . The straight-time wage is w , and the overtime premium is 1.5 for hours worked in excess of h*. Now consider an increase in the overtime premium to 2.0 for hours worked in excess of h*. Write down a general formula for the new straight-time wage, w 1 , that leaves workers and firms indifferent under these two policy regimes....
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- Spring '07