Why do firms form internal labor market

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Explain: 'My employer doesn't determine my salary; he determines where I work.'

1. Describe the following qutation: "My employer doesn't determine my salary; he determines where I work."

2. In the basic competitive model, why do employees pay for general training and firms pay for specific training?

3. Why do firms form internal labor market?

4. Evaluate the following statement: "Firms are free to set salaries in any manner they want in an internal labor market."

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

6. Ho do influence costs affect pay within internal labor market?

Reference no: EM1336547

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