How influence costs affect pay within internal labor markets

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1. Present an economic argument to explain why firms often have mandatory retirement (where allowed by law).

2. How do influence costs affect pay within internal labor markets?

3. The U.S. Congress has considered proposals that would limit the level of top executive pay to some multiple of the lowest-paid employee in the company (e.g., executive pay must be less than 10 times that of the lowest-paid employee). Do you think this type of proposal is a good idea? Explain what effect the proposal would have on the involved companies.

Reference no: EM13921302

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